The Trade Minister, Simon Crean, said the talks were locked in after the Chinese agreed to discuss greater Australian access on agriculture and services.

"They weren't prepared to deal seriously on their sensitive issues, agriculture and services," Mr Crean told the Sydney Morning Herald. "They've now agreed that the meeting will proceed in February on the basis there will be serious discussion on these issues. That's a significant breakthrough."

The discussions faltered last December after Australia grew frustrated with China's unwillingness to give ground in these two areas. Subsequent diplomatic incidents tested the relationship and resulted in a lack of political will to restart the talks. These included rejection of Chinalco's bid to lift its stake in Rio Tinto, the arrest of four Rio executives, including the Australian Stern Hu, and the visit to Australia by the Uighur leader Rebiya Kadeer.

There has been a rapprochement in recent weeks that enabled the free trade discussion to be regenerated. The Prime Minister, Kevin Rudd, the Chinese Premier, Wen Jiabao, at the East Asia summit in Thailand last month. This was followed by a visit to Australia by the Chinese Executive Vice-Premier, Li Keqiang.

Mr Crean sealed the deal at the Asia-Pacific Economic Co-operation summit in Singapore last week when he met his counterpart, Chen Deming.

Mr Crean said he had also raised the case of Stern Hu, who remains in a Chinese jail.

"The Stern Hu case is not complicating progress on the FTA, but nevertheless, we continue to raise it as a consular case," he said.

The Howard government began the free trade negotiations in 2005, and last December the 13th set of talks was held.

One sticking point was China demanding more freedom to invest in Australian resources.

Mr Crean said Chinese investment was not a problem. Australia adopted a non-discriminatory approach and it would not be relaxing its Foreign Investment Review Board process.

He said investment was "a two-way street" and Australia wanted China to relax restrictions on Australian investment, which limited, for example, the potential to export financial services.

"Theirs is an economy that's not well developed on services, and we're a very well developed economy on services and we're saying its got to be a comprehensive FTA."