Mr Albanese and Governor-General David Hurley will meet with Mr Modi at Kirribilli ahead of bilateral talks on Wednesday morning.
The prime ministers are expected to discuss trade, defence and renewable energy as both nations seek to strengthen relations.
Business leaders and delegates will also meet with Mr Modi during what marks his first visit to Australia in 10 years and the two prime ministers' sixth meeting in 12 months.
It follows Tuesday's joint appearance at Sydney Olympic Park, where the leaders received a rapturous stadium welcome from a crowd of about 20,000.
Fans cheered as Mr Albanese announced a new centre for Australia-India relations would be based at Parramatta.
"Now we want to see more connections - more Australian and Indian students living and studying in each other's countries, and bringing those experiences home," Mr Albanese said during his speech.
"More business leaders and artists and families sharing your experiences, and your knowledge, and your ideas."
The centre will work across government, industry, academia and the community to build greater understanding within the Australia-India relationship and support business.
The centre's inaugural advisory board includes former Australian cricket captain Adam Gilchrist and former South Australian trade minister Martin Hamilton-Smith.
Mr Modi arrived in Australia from Papua New Guinea on Monday following last week's G7 summit in Japan.
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