PNG upset over Bougainville mission plan

The Australian government insists it discussed proposals to open a diplomatic mission in Bougainville with Papua New Guinea's government.

PNG Prime Minister Peter O'Neill says he is shocked by the announcement of the proposed mission in Buka, Bougainville, which he says happened without consultation.

But a representative for Foreign Minister Julie Bishop said the proposal was discussed in December 2014, and that High Commissioner Deborah Stokes formally advised the government before Tuesday's federal budget.

Mr O'Neill told the Lowy Institute in Sydney he learnt about the proposal when reading Australian budget papers.

"There has been no consultation on this proposal and there is no agreement to proceed," he said.

"We were shocked to learn from the budget documents that Australia is planning on establishing a diplomatic post in Bougainville.

"As we all know, Bougainville is an integral part of Papua New Guinea."

He also said there had been no communication with Ms Bishop.

But a foreign ministry official said Ms Bishop discussed her proposal to open a secondary post in PNG with that government during her visit in December 2014.

PNG Foreign Minister Rimbink Pato, who on Thursday described the plan as outrageous, has summoned Australia's High Commissioner to Port Moresby to explain "the media accounts of this mischievous proposal".

Mr Pato also said aspects of the peace-building dialogue between PNG officials and their foreign counterparts were seriously inadequate and needed immediate review.

The island province of Bougainville, which has its own autonomous government, is slowly grinding towards an independence vote due in the next five years.

PNG is the largest recipient of Australian aid following the federal budget, receiving $477.4 million, and is home to an Australian-run asylum seeker detention centre on Manus Island.