Australia is setting up its first high commission in Tuvalu's capital, Funafuti.
Karyn Murray has just been announced as the new high commissioner.
Australia's Foreign Affairs Minister Marise Payne said Tuvalu was a priority for Australia's stepped-up engagement in the Pacific.
She said it was one of the first countries to participate in Australia's new Pacific Labour Scheme that commenced on 1 July this year.
Ms Payne also said Australia was looking forward to working closely with Tuvalu as it prepares to host the 50th Pacific Islands Forum Leaders' Meeting in 2019.