Australian Prime Minister Tony Abbott has announced the conclusion of negotiations over a free trade agreement with China.

In a statement, Mr Abbott confirmed the two countries will sign a declaration of intent later this afternoon.

"As a result of my meeting with His Excellency Xi Jinping, President of the People's Republic of China, in Canberra this morning, I am pleased to announce the completion of negotiations for a China-Australia free trade agreement," Mr Abbott said in a statement on Monday.

"Trade and Investment Minister Andrew Robb and Chinese Commerce Minister Gao Hucheng will sign a Declaration of Intent this afternoon, undertaking to prepare the legal texts in both languages for signature."

It's been reported the deal is worth around $18 billion. News Corp Australia reports that under the deal 85 per cent of all Australian exports will enter China tariff-free.

I welcome President Xi to Aust & am pleased to announce the completion of negotiations for a China-Australia FTA. pic.twitter.com/slYhTsmBL7 — Tony Abbott (@TonyAbbottMHR) November 17, 2014