The Philippines and Australia are working towards a new defence agreement to be signed next year, their defence ministers said on Friday, as both nations seek to step up military cooperation to deal with shared security challenges in the Indo-Pacific.

Footage shows a Chinese coast guard vessel chasing a Philippine boat and then ramming a Chinese warship. It was the latest confrontation in the contested waters.

Australia has launched its largest military exercises with Philippine forces, involving over 3,600 personnel in live-fire drills and a beach assault near the South China Sea.