Australia and New Zealand have agreed to restore full diplomatic relations with Fiji.

It followed Australian Foreign Minister Bob Carr's meeting with New Zealand and Fiji counterparts, Murray McCully and Ratu Inoke Kubuabola, in Sydney.

Senator Carr said Australia would send a permanent high commissioner to Fiji for the first time since 2009.

Australia also agreed to take a more "flexible" approach to travel sanctions.

Senator Carr said Fijian government ministers and high level public servants will be allowed to visit Australia but travel bans for military personnel would remain in place.

"It wouldn't have been possible without the commitment of the interim government in Fiji to the process of constitutional consultation and the work that's taken place towards a constitution, their work on the electoral rolls, their work towards an election in 2014," he said.

The restoration of diplomatic ties comes after a Pacific delegation, including Senator Carr and Mr McCully, travelled to Suva in May as part of a Pacific Islands Forum (PIF) mission and reported "positive progress".

The Australian and New Zealand foreign ministers said they remained concerned about media freedoms and human rights in Fiji.

"Not all our concerns have been fulfilled. We're going to continue to watch developments in Fiji very carefully but we acknowledge the positive progress that has been made," he said.

Relations with Suva have been turbulent since Australia and New Zealand expelled Fiji's envoys in November 2009, a day after Suva ordered their high commissioners out, claiming interference in its judicial affairs.

Mr McCully said restoring ties was a significant step that reflected improved relations with Fiji.

"It's acknowledgement of the significant progress that has been made towards the restoration of democracy in Fiji," he told AFP.

Fijian Foreign Minister Ratu Inoke Kubuabola reiterated his government's commitment to ensuring an environment in which free and fair elections can be held.

ABC/AFP