The Japanese and Australian defence forces will boost co-operation through further war games with the prospect of troops being rotated through the Top End.
The pair are working to bolster their defences against an unprecedented Chinese military build up, with the announcement following Chinese air force and navy incursions in Japan's territory.
Australia will join Exercise Orient Shield for the first time in 2025. The annual drill is the largest land wargame between Japan and the United States.
"We will see more training, more exercises, more people-to-people links between our two air forces," Defence Minister Richard Marles said following an Australia-Japan ministerial meeting on Thursday.
Japanese jet fighters visited Darwin and Australia then sent its own back for Exercise Bushido Guardian in 2023.
This has paved the way for closer ties and training drills between Japanese, Australian and American air forces, Defence Minister Minoru Kihara said.
The Australian Defence Force will also look at hosting a Japanese rapid-response maritime brigade alongside US marine rotations through northern Australia.
"We should jointly strengthen our deterrence capability in the region (and) utilise our partnership with the United States, which is a common ally," Japanese Foreign Minister Yoko Kamikawa said through a translator.
A landmark review of Australia's military recommended a greater focus on the nation's northern border and maritime capabilities.
Foreign Minister Penny Wong and Mr Marles hosted their Japanese counterparts near Melbourne for annual talks on Thursday.
The four discussed concerns over Chinese military actions in the South China Sea and incursions into Japanese territory.
"We certainly expressed our support for Japan's sovereignty," Mr Marles said when asked about China's conduct.
Beijing denied controversy over the incidents, saying a Chinese vessel exercised its right to transit under international maritime laws.
The aerial incursion was being investigated but "China has no intention" of invading sovereign airspaces, its foreign ministry said.
Japan and Australia also agreed to a new initiative to boost connectivity and cyber security in the Pacific.
Canberra and Tokyo will expand information sharing and do more to publicly name those behind cyber attacks.
Australia will continue to supply Japan with gas as global economies transition to renewable energy, Senator Wong pledged.
"Australia and Japan have had, historically, such an important economic relationship because we have been a reliable energy supplier," she said.
Quad nation leaders from Australia, Japan, India and the US are set to meet in coming weeks.