Australia has joined about 30 other nations in recognising Libya's National Transitional Council as the country's legitimate governing authority.
At a meeting of the Libya contact group in Istanbul, representatives of Western and regional powers called for Libyan leader Muammar Gaddafi to "leave power".
The council, which is based in the Libyan city of Benghazi, is also known as the TNC.
Australia's Foreign Minister Kevin Rudd, who attended the Istanbul meeting, said the council will be recognised for the moment.
"Until an interim authority is in place, Australia and others will recognise the TNC as the legitimate governing authority for Libya and will engage with it accordingly," Mr Rudd said in a statement.
"Australia and other international friends of Libya recognise the achievements of the TNC in preparing Libya for a post-Gaddafi era of security and progress, and addressing the immediate needs of Libyans for humanitarian support and basic services."
Mr Rudd said the council is taking "concrete steps" to provide a better life for Libyans.
"This is not just a group that represents the so-called rebels, or opposition movement."
Last week, a delegation from the Department of Foreign Affairs and Trade and AusAid travelled to Benghazi and met with representatives of the council.
