Australia is set to manufacture missiles for US military forces under a joint plan between the close allies, the Sydney Morning Herald reported late on Friday.
Under the plan, set to be announced as part of the annual Australia-US Ministerial (AUSMIN) dialogue, Australia will develop a local missile manufacturing industry within two years, the report said.
Australia's Defence Department did not immediately respond to an emailed request for comment on the report.
US Secretary of State Antony Blinken and Defence Secretary Lloyd Austin are in Queensland state for the AUSMIN talks with their Australian counterparts.
Progress on a deal for the US to sell nuclear powered submarines to Australia, regional security and clean energy are the focus of this year's dialogue.
It is the first time Australia has hosted the high-level meeting since 2019 due to the Covid-19 disruption.
Following the two-day talks that end on Saturday, Defence Minister Richard Marles and Austin are set to travel to north Queensland where Australian and US military are taking part in the 'Talisman Sabre' war games, along with 11 other nations.
The talks were overshadowed after an Australian Defence Force (ADF) helicopter participating in Talisman Sabre crashed into the ocean off the coast of Queensland late on Friday, with at least four people onboard feared dead.
Foreign Minister Penny Wong said on Saturday morning that the delegates met "with heavy hearts" in the wake of the crash.
"It is this stark reminder of the risk that the men and women who serve us take," she said at the talks.
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