The US State Department has approved a possible foreign military sale of 155mm ammunition and accessories to Australia.
Estimated to cost around $132.2m, the potential deal will also include the delivery of associated equipment.
The Defense Security Cooperation Agency has also notified the US Congress about the decision.
The step comes after the Government of Australia requested M825A1 155mm White Phosphorous projectile munitions, M782 Multi-Option Fuze for Artillery, M762A1 electronic-timed fuzes, M231 and M232A2 propelling charges, percussion primers and technical publications and books from the US.
The deal will also include the delivery of technical data for operational maintenance, technical assistance and services, and associated elements of logistics and programme support.
In a statement, the Defense Security Cooperation Agency said that the Australian Defence Force (ADF) already owns these ammunitions and will have no difficulty in absorbing these weapons into its arsenal.
The addition of materiel is expected to enhance the combined operation capabilities of the ADF, as well as support training purposes.
The principal contractor for the deal is yet to be determined. However, it is expected to be sourced from a combination of stocks and new procurement.
The DSCA statement added: “This proposed sale will support the foreign policy and national security objectives of the United States. Australia is one of our most important allies in the Western Pacific. The strategic location of this political and economic power contributes significantly to ensuring peace and economic stability in the region.”
Earlier this year, the US State Department approved another possible foreign military sale of Javelin anti-tank missiles to Australia.