The prime minister of Solomon Islands says an independent commission will be set up to investigate corruption allegations against politicians and government officials.

Manesseh Sogavare made the announcement in his New Year's message to the nation.

Mr Sogavare said the Independent Commission Against Corruption (ICAC) would also introduce anti-corruption legislation and subsidiary regulations.

Anti-corruption watchdog Transparency Solomon Islands has welcomed the government's decision.

"An ICAC will put a stop to the corrupters, whether its an offering or receiving of a bribe to do a dishonest practice," executive officer Daniel Fenua told Pacific Beat.

"It will also ensure that resources are harvested sustainably and services are delivered."

Mr Fenua wanted to see more details about the government's plan for an independent commission and hoped it would also be retrospective.

"One of the steps the government really needs to look at is to reactivate cases, there are a lot of allegations in the past that have not yet surfaced, that have not been investigated."

Solomon Islands opposition leader Jeremiah Manele said it fully supported the establishment of an ICAC.

Speaking to Solomon Star Newspaper, Mr Manele said corruption in the public sector had gone undetected and unchecked for many years, causing serious damage to the nation.

The announcement comes after recent comments by outgoing high court judge, Australian Justice Stephen Pallaras that an ICAC was required in Solomon Islands more than "any other country on the planet".