Australia will join a German-initiated climate club, as the federal government aims to seal a free trade deal with the European Union.

Prime Minister Anthony Albanese is in Berlin where he met with German Chancellor Olaf Scholz on Monday ahead of the NATO summit in Lithuania.

Mr Albanese said the pair had “warm and productive” discussions on trade, regional security, defence and the green economy.

Australia’s government is in critical talks with the EU to finalise negotiations for a free trade agreement, which have stalled.

Trade Minister Don Farrell has flown to Brussels to try to end the stalemate with the bloc, as the government seeks greater access for Australian agricultural products.

Mr Albanese said the free trade agreement (FTA) would strengthen economic links between Australia and the EU at a time of global uncertainty.

“I thank Chancellor Scholz for Germany’s support for an ambitious agreement that delivers for Australian and German businesses, workers and their families,” Mr Albanese told reporters in Berlin on Monday.

“Ultimately, our negotiations with the EU will only be concluded when we have a good deal and one that includes new market access for our agricultural products.”

Mr Albanese has invited Mr Scholz to visit Australia as a guest of the government next year.

The prime minister also revealed Australia will join an international climate club that aims to increase co-operation on climate action.

“Australia and Germany are now united in our deep commitment to tackling climate change, and I commended Chancellor Scholz on his development of Germany’s climate club and was pleased to confirm that Australia will join that high ambition initiative,” Mr Albanese said.

The club aims to increase international collaboration on climate action, and includes countries such as Canada, the United Kingdom, Japan and the United States.

Earlier, Mr Albanese announced Australia will sell locally made armoured vehicles to Germany under a $1 billion defence export deal.

– AAP