Foreign Minister Marise Payne has met with French ambassador Jean-Pierre Thebault amid tension between the two countries.
Senator Payne said the pair had a constructive discussion about progressing the relationship and the meeting was "another important step in that process".
The hour-long meeting in Sydney on Monday came hours after French President Emmanuel Macron accused Scott Morrison of lying about the cancellation of the $90 billion submarine deal.
Mr Macron told Australian journalists on the sidelines of the G20 summit in Rome "I don't think, I know" the Australian prime minister lied to him.
Australia had broken the trust that underlines the partnership and the ball was in Canberra's court to come up with "tangible actions" to heal the fractured relationship, he told the reporters.
Mr Morrison denied lying to the French president.
Labor's foreign affairs spokeswoman Penny Wong said it was good Ms Payne had spoken with the French ambassador but the meeting was "undermined and damaged by what the prime minister has done and how he is dealing with it".
"It is unprecedented to see a world leader so bluntly assert that we are led by a man whose work he doesn't trust," Senator Wong told the ABC.
"The problem is his dishonesty is now damaging the national interest of Australia."
Mr Thebault will address the National Press Club on Wednesday, seven weeks after Australia announced it was cancelling its 2016 contract to acquire conventional Attack Class submarines from French company Naval Group.
Mr Thebault was recalled to France following the announcement Australia was tearing up the contract in favour of nuclear-powered submarines purchased under a new alliance with the US and Britain.
The French ambassador was cleared to exit his two weeks quarantine over the weekend after returning to the country in mid-October.
Australian Associated Press