During a media briefing in Makati City on August 22, 2025, Australian Deputy Prime Minister and Defense Minister Richard Marles and Philippines Defense Secretary Gilberto Teodoro Jr. announced an upcoming Defense Cooperation Agreement between the two nations. The accord, expected to be finalized by next year, is designed to deepen military collaboration and promote regional security.

Deputy Prime Minister Marles stated, "Today, we signed a statement of intent to pursue a Defense Cooperation Agreement, which we aim to finalize this time next year. This marks a significant step forward in our defense relationship."

Building upon the framework established by the 1995 Memorandum of Understanding, the new agreement will encompass a comprehensive range of defense initiatives, including annual meetings of defense ministers, coordinated military exercises, and enhanced operational cooperation.

Marles further emphasized plans for Australia's support in infrastructure projects intended to bolster the capabilities of the Armed Forces of the Philippines. He remarked, "As part of our outcomes, we agreed to pursue a defense infrastructure plan. Australia is currently undertaking eight projects across five locations in the Philippines."

Defense Secretary Gilberto Teodoro Jr. described the agreement as a "concrete expression" of the bilateral defense partnership. He noted that finalizing the pact in 2026 aligns strategically with the Philippines' role as host of the ASEAN Summit. Teodoro also acknowledged Australia's support for the Philippines' maritime rights under the United Nations Convention on the Law of the Sea, stating, "We are working together in the Indo-Pacific to uphold our shared values of international law amid growing challenges."

This forthcoming agreement marks a significant advancement in the defense relationship between the Philippines and Australia, underscoring shared commitments to joint readiness and regional stability.