New Environment Minister Melissa Price has been accused of insulting regional neighbours by telling a Pacific leader the region was "always" seeking "cash" from Australia.

Key points: Multiple sources have told the ABC Melissa Price made the "cash" comment to Anote Tong

Multiple sources have told the ABC Melissa Price made the "cash" comment to Anote Tong Labor frontbencher Pat Dodson conveyed the comments to Ms Price and Scott Morrison

Labor frontbencher Pat Dodson conveyed the comments to Ms Price and Scott Morrison Ms Price called the claims "completely inaccurate"

The former president of Kiribati, Anote Tong, was dining with a group in Canberra last night when Ms Price approached.

Multiple sources have told the ABC the newly installed Cabinet Minister said to Mr Tong: "I know why you're here. It is for the cash.

"For the Pacific, it is always about the cash. I have my chequebook here. How much do you want?"

Ms Price has denied making the comments, first reported in Fairfax Media, telling Federal Parliament she "100 per cent" disagreed with "what he has said was the conversation".

Labor frontbencher Pat Dodson conveyed the comments in a letter to Ms Price and the Prime Minister today in which Senator Dodson demanded an apology for Mr Tong, a former Nobel Prize nominee.

Director of the Edmund Rice Centre Phil Glendenning, who was also at the dinner, confirmed the comments were made.

Former Kiribati president Anote Tong (right) watches Question Time. ( ABC News: Ian Cutmore )

Mr Tong led Kiribati between 2003 and 2016, and is in Australia campaigning for action on climate change.

"What I did say is that the Pacific is a very good friend and neighbour to Australia, and in fact that is exactly what I said to President Tong last night," Ms Price said.

"I am very concerned that in some way President Tong has been offended in any way."

Ms Price said she was a friend of Senator Dodson, a fellow West Australian, before adding: "Some friend, I have to say."

Foreign Minister Marise Payne told Parliament Assistant Minister for the Pacific Anne Ruston met with Mr Tong today and, "reaffirmed our strong commitments to the Pacific".

"Her role … is to work closely with our Pacific neighbours to build climate change resilience, to support them in adaptation," Senator Payne said.

But the ABC understands last night's exchange did not come up in today's talks.

In a statement later today, Ms Price said she was "very disturbed by what is a completely inaccurate representation" of the conversation.

"We had a very cordial and relaxed conversation," she said.

"I spoke to former President Tong a short time ago and he thanked me for reaching out to him."

When asked about the encounter, Mr Tong told Sky News: "Really that's not important, it's hardly relevant to the mission that I'm trying to embark on."

Labor and Greens target Price

Federal Labor said the exchange was disrespectful and "beggars belief".

"This is an appalling contribution from Melissa Price," Shadow Climate Change Minister Mark Butler said.

Greens Senator Sarah Hanson-Young labelled Ms Price "the worst environment minister ever".

"She dismisses not just the science [of climate change and] she now dismisses the views and the very heartfelt advocacy of leaders in the region."

Pacific island leaders are strong campaigners for action on climate change, with some nations fearing inundation because of rising sea levels.

Ms Price was announced as Environment Minister in late August.

In her first major interview in the role, she last week argued some of the world's leading climate scientists were "drawing a long bow" in calling for an end to coal power in a bid to limit global warming.