Australia and the Philippines are confident they are on track to sign a defence cooperation agreement later this year to build on already strong military relations, Defence Mnister Richard Marles says. The deputy prime minister held talks with his Philippines defence counterpart Gilberto Teodoro in Darwin on Friday. Mr Marles said good progress was made in Friday's talks on an Australia-Philippines Defence Cooperation Agreement. "We very much stand with the Philippines in the assertion of the UN Convention on the Law of the Sea," Mr Marles said. "All of this is an expression of how closely our two defence forces are working together," Mr Marles said.