Australia is "well and truly" disposed to join the China-led Asian Infrastructure Investment Bank (AIIB), Australian Prime Minister Tony Abbott said on Wednesday.
Fairfax Media citing government sources, reported the federal cabinet has approved Australia signing a "memorandum of understanding" on joining the AIIB.
"We are certainly well and truly disposed to joining something which is in fact a genuinely multilateral institution with transparent governance, clear accountability and with major decisions made by the board," Abbott told reporters.
"That is really the fundamental thing for us, would major decisions be made by the board and is it going to be a multilateral institution rather than one that is controlled by any one country," he said at a news conference in Canberra.
Australia, South Korea and Japan are the notable regional absentees from the bank, which the United States had warned against. Despite Washington's misgivings, US allies Britain, France, Germany and Italy announced this month they would join the bank, leading the Obama administration to reassess its stance.
China's Xinhua news agency has said Beijing will not hold any power of veto in the bank.
Japan, however, is cautious about joining while South Korea has said it is yet to decide.
Abbott said he has discussed the matter with US President Barack Obama and Japan's Prime Minister Shinzo Abe and would continue talking to them.