American President Barack Obama has poked fun at New Zealand during an awkward exchange with Prime Minister Malcolm Turnbull.

The pair were casually discussing upcoming meetings during some down time at the APEC summit in Manila and appeared to be unfazed their conversation was being picked up by microphones.

After Mr Turnbull mentioned a bilateral with New Zealand Prime Minister John Key, Mr Obama jokingly asked: 'So you actually talk to the New Zealanders?'

Scroll down for video

US President Barack Obama has poked fun at New Zealand during an awkward exchange with Prime Minister Malcolm Turnbull

Mr Turnbull cracked a smile before admitting he does in fact talk to New Zealanders.

'I do, look, [Mr Key] is a real role model,' Mr Turnbull said in response.

The pair then began to discuss how 'wonderful' Mr Keys is, with Mr Obama adding that the duo often play golf together.

'He's a wonderful guy and he and I have become good friends,' he said.

Mr Turnbull cracked a smile before admitting he does in fact talk to New Zealanders

'I do, look, [Mr Key] is a real role model,' Mr Turnbull said in response before the duo began to discuss how fond they are of Mr Key

The pair then began to discuss how 'wonderful' Mr Key is, with Mr Obama adding that the duo often play golf together (pictured: the pair hitting the golf course in January 2014 on Oahu)

This comes after another awkward exchanged between the pair while the cameras were rolling on Wednesday when Mr Obama invited Mr Turnbull to the White House.

The Prime Minister appeared to have difficulty hearing or understanding the question and it took a brief moment for the impact of the offer to set in.

'Oh yeah, good. Yeah, absolutely!' he finally said in response.