Canada and Australia are banding together to ensure the revenues of web giants are shared more fairly with creators and media.

A statement from Ottawa says Prime Minister Justin Trudeau and Australian Prime Minister Scott Morrison have agreed to continue "co-ordinating efforts" to address online harm and ensure social media companies pay for journalism.

The statement says the two leaders spoke Monday on a range of topics including the growing co-operation between Canada and Australia on the regulation of online platforms.

The increasing alliance between the two countries on legislating internet giants to pay for news comes as Facebook backs down on its ban on Australians viewing and sharing news on its platform.

The social media company announced Tuesday it would lift the ban, saying it had struck a deal with the Australian government on proposed legislation that would make digital giants pay for journalism.

Facebook caused alarm with its sudden decision last week to block news on its platform across Australia after the House of Representatives passed the draft law.