Talking to reporters, Nepal Deputy PM Kamal Thapa said a formal agreement to import fuel from China will be signed during Mr Oli's visit.
Amid hiccups in Indo-Nepal ties over the Madhesi issue, Nepal's Prime Minister KP Sharma Oli is set to embark on his maiden China visit soon, ignoring the usual practice of visiting India first by a new premier.
"PM Oli will visit China in the beginning of the New Year 2016 during which many agreements will be signed," Deputy Prime Minister Kamal Thapa said.
Mr Thapa, who returned to Kathmandu after concluding his week-long China visit, said the schedule has been finalized for Mr Oli's visit amid the political crisis over Madhesis.
Madhesis, who share strong cultural and family bonds with Indians, have imposed a general strike in much of southern Nepal, causing a shortage of fuel and other essential goods.
The proposed China visit of Mr Oli, who took over as prime minister in October, is in marked contrast to the usual practice the new prime ministers of Nepal follow. Most of the Nepalese premiers have visited India, ahead of China.
Nepal has already signed an MoU with Petro China to import all kinds of fuel, ending Indian Oil Corporation's long-held monopoly on the Nepalese fuel market. Nepal has been buying over Rs 8,600 crore (USD 1.3 billion) of gasoline from Indian Oil annually.
Talking to reporters at the Tribuvan International Airport, Mr Thapa said a formal agreement to import fuel from China will be signed during Mr Oli's visit.
Only Pushpa Kamal Dahal 'Prachanda' had rubbed India the wrong way when he chose China as the first destination of his foreign visit after taking over as Nepal's prime minister and attended the Beijing Olympics 2008.
India has been rather cold to Prachanda over the years and sees him as someone keen on pushing Nepal closer to China.
China, meanwhile, has agreed to provide 1.4 million litres of fuel worth Rs 10 crore (10 million yuan) to Nepal to meet its emergency needs, said Mr Thapa, adding that the fuel would be a grant.
Nepal Oil Corporation transported the fuel from Kerung of Tibet, The Kathmandu Post reported.
Earlier in October, China had provided 1.3 million litres of petrol to Nepal to cope with the severe fuel crisis due to the Madhesi blockade on Indo-Nepal border points over the new Constitution.
Madhesi leaders have submitted an 11-point demand to the Nepal government to end their protests launched in August over "discriminatory" nature of the Constitution.