Japan will send a high-level delegation to Adelaide for talks on building Australia's next-generation fleet of submarines.
A competitive evaluation process is underway for the contract, with Japan, France and Germany in the running ahead of an announcement in early 2016.
Japan's ambassador to Australia Sumio Kusaka announced on Tuesday the defence and trade ministers in August will lead a 40 member delegation including representatives from Mitsubishi Heavy Industries and Kawasaki Heavy Industries on a trip to South Australia.
They will give presentations and talk with Australian companies and officials.
Mr Kusaka was tight-lipped about specifics of Japanese design options, during an address to the National Press Club, the first by a Japanese ambassador.
On the table is submarine construction in Japan and Australia of a hybrid model, he said.
"(Japan) is developing a package that will maximise Australian industry involvement without compromising capability, costs and schedule," Mr Kusaka said.
He believes the Soryu-class came the closest to fulfilling Australia's requirements.
"The Soryu is on everybody's mind," he said.
Mr Kusaka acknowledged there was a difference in Japan's approach to the bid compared to the French and German players who were "aggressively and actively engaging".
"The Japanese are also engaging very seriously and earnestly with the Australian government," he said.
He argued there was some strategic benefit for Australia to choose the Japanese bid because both countries had a security alliance with the US and submarine procurement could help strengthen ties.
Japan is only now considering the export of subs because of Prime Minister Shinzo Abe's reinterpretation of the country's post-World War II pacifist constitution.
Labor has accused Prime Minister Tony Abbott of doing a secret deal with Mr Abe to buy Japanese submarines, at the expense of Australian industry and workers.
Under the competitive evaluation process, the government has invited the three contenders to submit their designs plus options for construction in Australia, overseas or a bit of both, along with indicative costs and delivery schedule.
Even if the government opts for an overseas build - which would certainly outrage Labor, unions and South Australian voters - there would still be plenty of work for local firms.
That includes the very complex job of installing and integrating the weapons, sensor and combat systems.
A long-term plan for the naval shipbuilding industry is expected to be outlined in the defence white paper to be released later this year.
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