The Prime Minister Kevin Rudd has extended the invitation during his talks with President Obama today.

"We had a chat at the end of our conversation about his desire to visit down under," Mr Rudd said.

"I told him he was always welcome and we are looking at the possibility of him visiting Australia in the course of 2010. That would be terrific," he said.

"I am sure all Australians would make the President and Michelle and the family, if he chooses to bring them, very welcome.

The President told the Indonesian president Susilo Bambang Yudhoyono at APEC in November that he would like to visit next year and bring his daughters to see where he grew up. There has also been talk about him visiting India.

"I want to make sure that everybody knows that I intend to be visiting Indonesia next year," Obama said.

"I'm hoping to be able to take Michelle and the girls as well so that they can take a look at some of my old haunting grounds," he

If he brings the entire family then it is likely to be in late June July or August, when American schools have their summer break.

The Clintons combined an official visit in 1996 with a holiday in Port Douglas when Bill Clinton was in the White House.