Chinese Premier Li Keqiang spoke to his Australian counterpart Julia Gillard on the development of bilateral cooperation in a phone call on Friday.

Extending her congratulations to Li on his endorsement as the new Chinese premier, Gillard said Australia and China had great potential and broad prospects for cooperation.

She said Australia attached great importance to its relations with China, adding her country was ready to make concerted efforts with China to push forward their comprehensive constructive cooperation on the basis of mutual respect and mutual benefit.

Australia was also willing to work with China to lift bilateral relations to a new level and enhance trust and cooperation among countries in the region, Gillard said.

Li spoke highly of the Australian government's diplomatic priority in developing its relations with China, saying his country regarded Australia as a good friend for peaceful coexistence and partner for mutually beneficial cooperation in the region.

Under the new situation, he said, China was ready to work with Australia to enhance mutual political and strategic trust and deepen pragmatic cooperation, so as to boost the in-depth development of relations between the two countries.

China and Australia were two important countries in the Asia-Pacific, Li said, adding it was in the common interest of both sides to safeguard peace, stability and prosperity in the region.

Noting the hard-won sound momentum of development in the Asia-Pacific, he said countries in the region should carry out a policy that was conducive to advancing mutual trust, solidarity, cooperation and social and economic development.

China was willing to do its part to strengthen coordination and communication with Australia, the Chinese premier said.

Li was endorsed as Chinese premier on March 15 at the 12th National People's Congress annual session.