Solomon Islands Prime Minister, Danny Philip, is visiting Papua New Guinea for two days - his first since being elected Prime Minister last year.

He touched down at the Jackson's International Airport in Port Moresby on a commercial Air Niugini flight after midday on Wednesday.

National Radio NBC reports, Mr Philip was treated to a red carpet welcome with a gun salute.

On hand to welcome him was a PNG government delegation led by Foreign Affairs Minister, Ano Pala, and National Capital District Governor, Powes Parkop.

A guard of honor was also held by the Papua New Guinea Defence Force for the Solomon Islands Prime Minister.

NBC reports Mr Philip paid a courtesy call on Governor General, Sir Michael Ogio, yesterday, before Prime Minister Peter O'Neill hosted a dinner for his visiting counterpart last night.

It is understood that a multimillion dollar agreement was signed between the two Melanesian States. A press release from the Prime Minister's Office stated that the new budgetary support from PNG amounted to some SB$300 Million dollars over five years.

It also quotes PNG's Prime Minister Peter O'Neil as saying that "an economically independent Melanesia is good for us, it will be beneficial to all of us."

PNG has been enjoying strong economic performance in the recent past. Strong future growth is also expected with the commencement of its multi-Billion dollar LNG project.