Australian Prime Minister Tony Abbott, who is on a state visit here, invited Modi to visit Australia.
"I have accepted Prime Minister Abbott's invitation to pay a bilateral visit to Australia after the G20 Summit," he said adding that both will try and meet each other at every available opportunity.
The G20 summit is scheduled to be held in November.
Modi said both the countries will increase dialogue at senior officials' level, including in the political, economic and security areas.
Holding Modi's hands tightly, Abbott said he was "not only pleased but touched" by the warmth of Modi's welcome.