Britain's Defence Minister John Healey and Foreign Minister David Lammy met their Australian counterparts Richard Marles and Penny Wong in Sydney on Friday.
The agreement is to form the basis for cooperation on building a new Australian submarine fleet, which will use American nuclear technology.
This is one of the most important agreements that our countries have concluded since Australia became a federation in 1901, said Marles.
The agreement is part of the defence cooperation between Australia, Britain and the US presented in 2021. The purpose is to meet China's increased military power in Asia and the Pacific region. According to the agreement, Australia will get at least eight submarines - including three to five used American submarines.
