Qantas and China Eastern have applied for an expansion to their joint venture, which will include new flights between Australia and China.
Subject to regulatory approval, the five-year agreement will commence mid-2015 and will see the two airlines bid to open up new routes from new cities, such as Brisbane and Perth to Shanghai.
Additionally, the two will share operations in Terminal 1 at Shanghai International Airport.
Qantas chief executive Alan Joyce said coordinating with the Chinese carrier will improve schedules and connection times.
It will also deliver new products such as joint lounge and check-in facilities.
Qantas and China Eastern launched their existing codeshare agreement in 2008 on flights between the two countries.
The Australian carrier said air services between the two countries plays a vital role in building economic ties.