India and Australia have decided to begin negotiations for a bilateral civil nuclear agreement.
This was announced after the meeting between Prime Minister Manmohan Singh and his Australian counterpart Julia Gillard here on Wednesday.
For Australia, such a pact is a prerequisite to selling uranium to other countries.
"PM Manmohan Singh welcomed the decision (on sale of uranium) ... noting that nuclear energy will play an important role in India's future energy needs," a joint statement said.
Both PMs also agreed to strengthen cooperation on energy security through an annual ministerial-level dialogue.
The dialogue will be led by the deputy chairman of the Planning Commission and the Australian minister for resources and energy.