The Abbott government will spend $4 billion buying eight P-8A Poseidon maritime patrol planes for the Royal Australian Air Force.
The US-built aircraft will be delivered in 2017 to replace the Cold War-era P3 Orion aircraft.
While the purchase has been planned for some time, the announcement comes a fortnight after China sent several warships, escorted by a submarine, through the Sunda Strait between the Indonesian islands of Java and Sumatra.
The government will also have the option of buying four more of the aircraft at a later date.
The Poseidon will come equipped with torpedoes and harpoon missiles to destroy submarines and warships.
The aircraft are already in operation with the United States Navy.
They will operate with several unmanned Triton long-range patrol aircraft the government also expects to buy.
The aircraft will be based at RAAF Base Edinburgh in South Australia.
Tony Abbott said the aircraft would be at the heart of Australia’s surveillance and maritime strike capacity for decades to come.
“This is a very important defence acquisition. It has been quite a long time coming but now we are going ahead,’’ he said.
All eight aircraft would be operational by 2021.
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