The governments of Papua New Guinea and Australia have agreed that, from next year, about 2,000 PNG students will receive training in Australia a year.
The Post Courier reports the agreement is to develop human resources and skills in PNG.
PNG's National Planning and District Development Minister, Paul Tiensten, says the deal was reached at the Australia/PNG-Ministerial Forum in Brisbane earlier this month.
Mr Tiensten says human resource development is a priority in the government's long-term development plan through to 2030.
The minister says huge demand from the liquid natural gas project and other industrial developments has outstripped PNG's ability to supply skilled and trained professionals.
The National Executive Council is establishing several new vocational schools including upgrading the Port Moresby Technical College.
And in additions it will send up to 2,000 students a year to Australia after completing their grade 10 or 12 to be trained in various trades and professions.