Dili – East Timorese Prime Minister Xanana Gusmao on Friday welcomed new Australian Prime Minister Julia Gillard and thanked ousted leader Kevin Rudd for his "steadfast support".

"The peoples of Australia and Timor-Leste share a strong and mature friendship which will continue under the new leadership of Prime Minister Gillard," he said in a statement, using his country's formal name.

"We look forward to working with her and her cabinet on critical matters that concern both our countries and the region."

Gillard was appointed prime minister on Thursday after deposing Rudd as leader of the Labor party.

Australia has about 400 peacekeeping troops in its tiny northern neighbor East Timor, which is still dependent on foreign aid more than a decade after voting to split from Indonesia.