Mr Albanese will meet with James Marape in Port Moresby in January as part of annual talks between the two nations.
The trip will be the first visit by an Australian prime minister to Papua New Guinea since 2018.
Mr Albanese was set to travel to Papua New Guinea earlier this month but the trip was postponed after he tested positive for COVID-19.
"I am looking forward to starting the new year with a visit to Papua New Guinea to reinforce the strong bond between our two countries," Mr Albanese said.
"Australia and Papua New Guinea are close not just geographically, but also because of our long history and shared vision for the future."
The two leaders will also travel to Wewak, on the country's north coast, to visit the resting place of Grand Chief Sir Michael Somare, who became Papua New Guinea's first prime minister after the country gained independence from Australia in 1975.
Sir Michael, who died in February 2021, is regarded as the "Father of the Nation".
"I thank Prime Minister Marape for the invitation and look forward to continuing our discussion in Port Moresby and Wewak," Mr Albanese said.
Australia is the nation's largest aid donor.
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