Papua New Guinea's National Agriculture and Quarantine Inspection Authority has advised of the suspension of all poultry products imported from Australia.
The move comes after two seabirds found on a remote beach in Western Australia tested positive for the deadly H5N1 strain of the virus over the weekend.
"The department is actively engaging with PNG to resolve this issue," the Department of Agriculture, Fisheries and Forestry confirmed in a market access advice update on Tuesday.
Australian chicken meat exports reached a record $133 million in 2023/24 and nearly half went to PNG.
There had been no evidence of mass mortalities among birds following the discovery of the sick birds, WA Agricultural Minister Jackie Jarvis said.
More than 100 reports of potentially sick birds have been made to the national emergency hotline since the first H5N1 detection.
The poultry and agricultural sectors in Australia remain free from the flu, although the industry has been placed on high alert since the cases were confirmed in wild birds.
Major poultry producer Inghams has since announced it would lock down its WA sites to mitigate against any potential risks.
More than 200 million chickens have been culled in the US since the virus arrived there.
The department has been contacted for further comment.
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