Indonesia and Australia have agreed to set up a hotline in an effort to mend strained ties after a spying row.

Reports last month, based on documents leaked by US intelligence fugitive Edward Snowden, said Australian spies tried to tap the phones of Indonesian President Susilo Bambang Yudhoyono, his wife and several top Government officials in August, 2009.

Meeting the press following talks with her Indonesian counterpart Marty Natalegawa , Australian Foreign Minister Julie Bishop said the two sides agreed to establish a special line of communication, or a hotline, to avoid any unintended consequences.

She also said Canberra has agreed to a six-point plan laid out by Yudhoyono last week, aimed at establishing a code of conduct to restore trust.

Natalegawa said that this is the first step and that the meeting with Bishop would help with restoring the relations between the two countries.

The suspension in cooperation would remain in place until the code of conduct was finalised, he said.-VNA