US President Donald Trump has labelled his reported testy phone call with Prime Minister Malcolm Turnbull earlier this year a "little bit of fake news" as the pair met in New York City this morning.

Key points: Donald Trump postponed the meeting to remain in Washington while healthcare bill replacement passed House

Donald Trump postponed the meeting to remain in Washington while healthcare bill replacement passed House President says tense call reports were "a little bit of fake news"

President says tense call reports were "a little bit of fake news" The leaders praised the courage of Battle of the Coral Sea veterans at dinner

The meeting happened almost three hours late after Mr Trump postponed it to remain in Washington while a bill to replace Obamacare passed the House of Representatives.

He held a lengthy celebratory press conference at the White House before boarding Air Force One and flying to New York.

It is the first time Mr Trump and Mr Turnbull have met since a testy phone call over a refugee deal between the two nations struck by the Turnbull Government and the Obama administration.

"You guys exaggerated that call. That was an exaggeration," Mr Trump said.

"I mean, we're not babies. We had a great call. It was a bit of fake news is the expression."

The President said the refugee deal issue "has been worked out for a long time".

"We had a great call," Mr Turnbull said.

Mr Trump said the US had a "fantastic" relationship with Australia.

"I love Australia. I always have," he said.

"Greg Norman is here, a friend of ours. We have a lot of friends here tonight."

Donald Trump and Prime Minister Malcolm Turnbull met at a commemoration of the battle of the Coral Sea. ( Reuters: Jonathan Ernst )

Mr Trump said he would "absolutely" visit Australia as President.

"That will happen. One of the great, great places. One of the most beautiful places on Earth," he said.

"I have so many friends there. I will be there. We will be there absolutely."

The President was due to meet Mr Turnbull at a Manhattan hotel but instead they held a 45-minute meeting onboard the USS Intrepid, a museum on the Hudson River, ahead of a gala dinner commemorating the 75th anniversary of the battle of the Coral Sea.

Sorry, this video has expired Turnbull pays tribute at Coral Sea commemoration dinner in New York

Speaking at the dinner attended by veterans of the Coral Sea battle and Australia-born media mogul Rupert Murdoch, the Prime Minister reflected on how extensive losses in battle secured "victory for America, Australia and our allies".

"Over 600 American and Australian sailors and airmen died to secure that victory," he said.

"Our nation's freedom was secured by the bravery of the men on those ships and the pilots who flew through everything, the enemy and the weather could throw in their way.

"As we reflect on the Battle of the Coral Sea, we are reminded of how the stability and prosperity of our region over so many decades has been secured and is secure today by the United States."

Sorry, this video has expired Donald Trump praises US-Australia relationship (Image: AP/Pablo Martinez Monsivais)

Mr Trump was introduced to the gala dinner by Mr Murdoch, who described the US President as his "dear friend".

The President said he was "profoundly grateful" for Australia's military contributions in the Middle East.

"Our two nations were born as the rebellious children of the same parent," Mr Trump said.

"With love for our two nations, with pride in our shared history and faith in almighty God, we renew our old friendship and pledge our lasting partnership in the search for prosperity and ever lasting peace."

Delay 'puts Trump somewhat on the back foot'

Australia's Defence Force Chief Mark Binskin introduces Malcolm Turnbull to US Pacific Command Admiral Harry B. Harris. ( AP: Mary Altaffer )

Earlier in the day Mr Turnbull met with the Commander of the US Pacific Command Harry Harris for talks about North Korea's nuclear missile program and other security issues.

The Prime Minister also toured the NYPD Counter-Terrorism Joint Operations Centre in downtown Manhattan.

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Mr Trump met Mr Turnbull at 7:15pm local time (9:15am AEST); the original meeting was scheduled for 4:20pm.

Former ambassador to the US Kim Beazley said earlier the delay could work in Australia's favour.

Mr Beazley said the distance between New York and Washington could be logistically difficult and the healthcare bill was a "reasonably good" excuse.

He also said it could make the President much warmer during the meeting.

"I think it probably puts Trump somewhat on the back foot in dealing with Turnbull, so it may make him a much more amenable dialogue partner when he finally turns up," he said.

Opposition Leader Bill Shorten said the delay was a bad look.

"I didn't like the look of our Prime Minister being kept waiting for three hours," he said.

"But I guess there's not much you can do about that."

It was Mr Trump's first trip back to his home city since taking office more than three months ago.