Japanese Prime Minister Sanae Takaichi arrived in Canberra on Sunday ahead of talks with Anthony Albanese at Parliament House.
The visit, which marks 50 years since the signing of a treaty which established relations between the two countries, is expected to focus on energy and defence.
But Foreign Minister Penny Wong has played down reports the defence talks could turn to a Japanese back-up for the $368 billion AUKUS submarine deal with the US and UK.
Former senior defence official Richard Gray said in a report by the Australian Strategic Policy Institute that risks in the AUKUS program could leave the country without a submarine.
He recommended Japan as an "attractive partner" to explore contingencies.
"Thanks to its prudent industrial policies and extensive manufacturing capability, it possesses a young, large, modern, highly capable submarine fleet," he wrote in the report.
Senator Wong said Australia would continue to focus on AUKUS.
"We have a clear AUKUS plan, that is our focus," she told Nine's Today program on Monday.
"Having said that, we obviously will continue to work very closely with Japan.
"Japan is our special strategic partner. Our relationship has grown from strength to strength over the last 50 years," she said.
The conservative Japanese leader, who considers former British prime minister Margaret Thatcher an inspiration, won a massive election victory in October, giving her a mandate to push through key reforms, particularly on defence.
Canberra chose Japan's Mitsubishi Heavy Industries to supply its upgraded Mogami-class frigate for Australia's navy for $10 billion.
Senator Wong said the decision on the frigates with Japan indicated close defence ties between the two countries.
While the treaty between Australia and Japan was negotiated in the context of the 1973 Middle East oil shock, this trip also takes place against the backdrop of a fuel crisis caused by the US-led war on Iran.
A deal on critical minerals is expected, while Ms Takaichi is likely to seek assurances from Australia for certainty about gas supplies.
During her stay in the nation's capital, the Japanese leader will also visit the Australian War Memorial, where she will lay a wreath at the tomb of the unknown soldier, as well as visit Governor-General Sam Mostyn.
Australian Strategic Policy Institute senior analyst Alex Bristow said the centrepiece of the visit would be an uplift of the partnership and would likely include new initiatives.
"The joint statement on economic security that will be announced ... is expected to include language on energy and critical mineral supply chains," he said.
"It may go further and also address vital technologies, like AI, which Takaichi has prioritised in her domestic economic reforms."
It is the first time a Japanese prime minister has visited Australia since Fumio Kishida travelled to Perth in 2022.
However, it will be the fourth time Mr Albanese and Ms Takaichi have met, with the leaders last holding talks on the sidelines of the G20 Summit in South Africa in November.
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