Wine maker Australian Vintage has signed a distribution deal with China's largest food processor, the state-owned COFCO, local media reported on Monday.

The company's core brand, McGuigan Wines, will soon become one of Australia's highest selling labels in China within a newly established International Wine division of COFCO.

The Australian company will join wine makers from Argentina, Chile, the United States and France, who are all vying for a higher share in the rapidly growing imported Chinese wine market.

Australian Vintage CEO Neil McGuigan said the China deal opened the doors to one of the world's most exciting wine markets.

"There is currently an opportunity for Australian wine in China, and it's one of the most exciting emerging markets for the global wine industry," he told Fairfax Media.

"Securing this partnership is a great honour for the McGuigan brand, not only for the opportunity to partner with a company of COFCO's stature and credibility but because they are a forward- thinking wine distribution company that understands the need to take the Chinese consumer on the wine journey."

McGuigan said 5 percent of its total Australian Vintage sales were from China, but this market share will grow thanks to the new distribution deal.

"COFCO has one of the best distribution footprints in China, and the creation of its imported wine division, where the McGuigan brand will sit, will enable our full portfolio of award-winning McGuigan wines to reach consumers across the entire Chinese market; something that gives us great confidence in the success of this cooperation," he said.