Scott Morrison will soon announce an in-principle agreement towards an Australia-UK free trade deal after finalising the details with Boris Johnson.
The pair worked through outstanding issues over dinner at 10 Downing Street.
"Their agreement is a win for jobs, businesses, free trade and highlights what two liberal democracies can achieve while working together," the prime minister's spokesman told AAP.
The leaders will make a formal announcement in London on Tuesday.
Trade Minister Dan Tehan talked up the UK pact during a coalition party room meeting in Canberra.
"Our aim is to have the best deal outside of the deal with New Zealand. The negotiations have been hard fought," he said
Agriculture Minister David Littleproud was slightly more circumspect, telling reporters it was another feather in Australia's cap, but not one that would rival trade with Asia and the Middle East.
The trade deal will pave the way for more Australians to live and work in Britain and offer exporters more market options.
It will also scrap a requirement for UK citizens to work on Australian farms before extending their visas.
But the Nationals say they have secured an agreement to put a mechanism in place to ensure no loss of seasonal workers.
Several key sticking points needed to be overcome before the initial agreement could be reached.
Agriculture firmed as the major obstacle, with British farmers keen to impose quotas on Australian beef and lamb.
UK dairy farmers were also deeply sceptical about the deal.
Ahead of the formal announcement, the prime minister made a free trade pitch before an audience of business leaders from both countries.
"As the United Kingdom moves into a completely new generation of their trading relationships with the world, who better to start that journey with than Australia?" Mr Morrison said.
He described the UK joining the European common market in the 1970s as a devastating blow to Australian producers.
"The Brexit that has occurred is an opportunity for us to pick up where we left off all those many years ago and to once again realise the scale of the trading relationship we once had."
Australian officials described negotiations as tough and the two trade ministers were in daily contact for more than a week.
"At the end of the day there will always be hesitancy when any country enters into a trade arrangement with any other country - that is quite normal," Mr Morrison said.
Deputy Opposition Leader Richard Marles said Labor had concerns about agricultural exports and visa conditions for farm workers, which the party would work through in time.
He urged Mr Morrison to crack on with the deal, having spoken about it since 2016.
"Trade agreements are important for our country and trade diversification is important for our country," Mr Marles said.
"The government has been talking about this. What we actually want to see is for them to get this deal done. When they do we'll obviously have a good look at the detail."
© AAP 2021