Singapore plans to more than double the number of troops training in Australia and triple the time they can spend training.
Under new arrangements Singapore will pay $2.25 billion to upgrade facilities at the Shoalwater Bay Training Area and Townsville Field Training Areas, for use by up to 14,000 troops for 18 weeks each year.
Singapore, which lacks its own space for military training, has long used Australian facilities and under existing arrangements can train up to 6000 troops for six weeks a year.
Defence Department Deputy Secretary Peter Baxter said what Singapore proposed was a significant increase in use over the next 25 years.
The funding will be used to upgrade training areas and associated infrastructure including roads and accommodation. Work will start once negotiations with Singapore are finalised.
Defence Minister Marise Payne said the agreement came under the Comprehensive Strategic Partnership with Singapore, signed by the Australian and Singaporean prime ministers last year.
Although Singapore is funding the new work, it will remain Australian property. Work will be performed under Australian tendering procedures.
"The facilities will be available for use by Australia on our training areas in the normal course of events," Senator Payne told a Senate estimates committee hearing.
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