The unique pact between the two countries includes both freedom of movement and security guarantees.
“We believe that the people of Tuvalu deserve the choice to live, study and work elsewhere as the effects of climate change worsen,” Australian Prime Minister Anthony Albanese and his Tuvaluan counterpart, Kausea Natano, said in a joint statement.
Tuvalu, with a population of 11,000 people, is among the world’s most vulnerable nations to rising sea levels.
Two of the island nation’s nine atolls have largely already sunk beneath the sea. Climate scientists fear that the island nation will be completely uninhabitable within the next 80 years.
Australia also undertakes to defend Tuvalu in the event of an invasion by a foreign power and to assist with aid in the event of a natural disaster.
The pact is likely to be seen as a significant strategic win for Australia, which is competing with China to consolidate its influence in the Pacific region.
The agreement must be ratified by each country before it enters into force.