Indonesian President Susilo Bambang Yudhoyono has confirmed that a man said to be a mastermind of the Bali bombings has been killed in a police raid near Jakarta.
Mr Yudhoyono made the announcement on Wednesday at Parliament House in Canberra during a three-day visit to Australia.
On Tuesday, police in Indonesia shot dead a man now identified as Dulmatin, a 39-year-old Indonesian trained by al Qaeda in Afghanistan.
He was wanted for his role in the suicide bombings of two Bali nightclubs in 2002 which killed 202 people, including 88 Australians and three New Zealanders.
Mr Yudhoyono also signed an agreement with Australia to try to end people smuggling in the region.
Australian Prime Minister Kevin Rudd says the two countries have agreed on a framework to try to stop the flow of asylum-seekers to Australia.
Mr Rudd also announced that Australia and Indonesia had agreed to annual meetings between senior ministers and closer co-operation in areas such as education and climate change.