British Defence Secretary Michael Fallon says a bid from his country to build Australia's submarine-hunter warships will maximise Australian jobs.
Sir Michael met with Defence Industry Minister Christopher Pyne in Sydney on Friday for the first Australia-UK defence capability dialogue.
Three shipbuilders are in the running for the $30 billion Future Frigate program - the UK's BAE Systems with its Type 26, Fincantieri of Italy with its FREMM and Navantia of Spain with an updated F100.
The winner will be announced in 2018.
They will replace the Anzac frigates from the mid-2020s, in a project that will create more than 2000 jobs.
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Sir Michael, who is set to release Britain's frigate shipbuilding strategy in coming weeks, told reporters after the meeting the Type 26 was the very latest digital design specifically made for anti-submarine warfare.
"It is being put forward to the Australian government by BAE systems who have a well established track record in Australia, a good record in local employment," he said.
"(It) will be be able to offer opportunities along the supply chain to a whole range of Australian companies."
He added that whether or not BAE won the bid, Australian companies were already winning work on the Type 26 program in the UK.
"Two companies have already been awarded work and I expect a dozen other Australian companies to be involved in that supply chain, producing the British frigate, whether or not the Australian government chooses the Type 26 design for their frigate."
Mr Pyne declined to express any preference for one of the three bidders for the nine frigates.
"But what you can be certain about is we will maximise their capability, their Australian industry content, they will be built at Osborne South (in Adelaide) with Australian steel, with Australian workers."
Sir Michael said Britain hoped to work closely with Australia on projects such as intelligent systems and cyber security to jointly win business in third markets by pooling expertise.
