Malcolm Turnbull predicts there will be a seamless transition to new US Secretary of State Mike Pompeo after the sacking of Rex Tillerson.
The prime minister described CIA director Mr Pompeo as a great friend of Australia who was already well-known to the government.
"We look forward to continue working with Mike Pompeo," Mr Turnbull told reporters in Brisbane on Wednesday.
"The transition will be absolutely seamless."
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Mr Tillerson, who Mr Turnbull congratulated for his work as a partner to Australia, was sacked overnight by President Donald Trump.
"Our relationship with the United States, as you know, is outstanding at so many levels from the president and myself, right through the military, intelligence, diplomacy, business," the prime minister said.
Foreign Minister Julie Bishop said she had a positive working relationship with Mr Tillerson and that would continue with Mr Pompeo.
"If there are any changes to US foreign policy obviously that is a matter for the United States," she told reporters in Sydney.
She was given a heads up about his departure ahead of the Twitter announcement.
Australia's embassy in Washington will contact the State Department to find an appropriate time for Ms Bishop to make contact with Mr Pompeo, ahead of his position being confirmed in April.
Labor's defence spokesman Richard Marles is also confident Australia's good working relationship with Mr Tillerson will continue with Mr Pompeo.
"I think Rex Tillerson handled his job with an enormous amount of dignity, so to that extent obviously it's sad to see him go," Mr Marles told Sky News.
