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A ceremony in parliament in Canberra

The deal, which Australia called the best ever between Beijing and a Western country, will open up Chinese markets to Australian farm exporters and the services sector while easing curbs on Chinese investment in resource-rich Australia.

Australian Prime Minister Tony Abbott and Chinese President Xi Jinping signed a memorandum of understanding clinching the agreement during a ceremony in parliament in Canberra.

"This has been a 10-year journey, but we have finally made it," Abbott said.

Xi praised the deal in an address to parliament, pledging to deepen cooperation with Australia while reaffirming China's willingness to resolve territorial disputes with its neighbors through diplomatic means.

"As long as we have our long-term and the larger interests in mind, increase positive factors and remove obstacles we will certainly forge a closer and more comprehensive strategic partnership between us," he said.

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