Anthony Albanese has come face-to-face with Japanese Prime Minister Sanae Takaichi for the first time since the so-called 'melon-gate' controversy.

Albanese initially sparked outrage after discussing a gift of luxury Shizuoka crown melons from Takaichi during an appearance on comedian Nikki Osborne's Bush Deep podcast in July.

When Osborne joked that the Japanese leader had 'come in looking like Pamela Anderson' because she brought 'two melons', Albanese gestured towards his chest and replied: 'She brought two, and they are beautiful.'

The remark later ignited a political firestorm, with critics accusing the Prime Minister of making an inappropriate comment about the Japanese leader.

Albanese rejected calls to apologise, arguing he had not insulted Takaichi and noting it was the podcast host who introduced the joke.

His office also insisted his hand gestures had been misinterpreted. Tokyo largely sought to defuse the controversy.

Japan's ambassador to Australia, Kazuhiro Suzuki, said Australian officials had assured his government that Albanese 'did not make the comments in the way that has been reported'.

Any lingering awkwardness appeared absent when Albanese and Takaichi met on the sidelines of the United Nations General Assembly in New York, in their first face-to-face meeting since the controversy erupted.

The meeting came as Takaichi delivered a stark assessment of the state of global affairs, using her address to the General Assembly to argue the world's post-war institutions are struggling to keep pace with modern challenges.

'The stable post-Cold War era is now a thing of the past,' she told delegates.

Takaichi reserved some of her strongest criticism for the UN Security Council, declaring that the body was 'not functioning for international peace' and arguing its structure still reflected 'the international situation as it stood in 1945'.

She called for reforms, saying the council must be transformed 'without delay' and expanded to include more permanent and non-permanent members so it better reflects today's world.

The intervention came as Albanese launches Australia's campaign for a coveted non-permanent seat on the Security Council for 2029-30.

Japan's push for structural reform comes amid criticism from several countries over the council's response to major international crises. 

Takaichi was particularly critical of Russia's use of veto powers on matters related to the war in Ukraine.

Australia is seeking one of the council's rotating seats, with Albanese arguing that a safer world is one 'governed by rules, not by power and force alone' and pledging to work through the United Nations on conflict prevention, climate security and the governance of emerging technologies.

Albanese will address the United Nations later this week. 

Nearly 130 world leaders are attending the high-level event, with the US Secret Service, NYPD and other agencies coordinating one of the year's largest security operations.

Adding to the disruption, police responded to a suspicious package at East 43rd Street and Third Avenue, just blocks from the UN headquarters.

The incident sparked building evacuations and road closures, with authorities shutting 42nd Street through 44th Street between Second and Lexington Avenues.

The Macquarie Bank event where Albanese had spoke earlier was about 1.5 kilometres away.

The NYPD initially urged the public to steer clear of the area.

'Due to police activity, please avoid the area around 43rd Street and 3rd Avenue. Expect road closures and delays,' the department posted.

Police later expanded the exclusion zone, stating: 'Due to a suspicious package, 42nd Street through 44th Street is closed between 2nd Avenue and Lexington Avenue. Please avoid the area.'

It is understood officers were investigating an unattended suitcase. Specialist units were deployed while nearby buildings were cleared and streets were cordoned off.