Manila  - Australia will increase its official development assistance to the Philippines to 4.4 billion pesos (93 million dollars) for 2008-2009, an embassy statement said Saturday.

The new aid package is up nearly nine per cent over the previous year, according to Australian Ambassador Rod Smith.

"Australia has long been a strong development partner of the Philippines, with our development cooperation programme going back to the 1950s," Smith said in the statement.

"Over the years, the Philippines aid programme has become one of our largest globally," he added.

According to the embassy, the 2008-2009 assistance package will support projects aimed at boosting domestic economic growth.

Australia will also help improve basic education, national stability and human security.

With the new financial aid package, Australia is now the Philippines' second largest bilateral aid donor next to Japan.

In the past 10 years, Australia's official development assistance to the Philippines has totaled more than 25 billion pesos, the embassy said. (dpa)