Design work on the navy's next generation of submarines will move to South Australia in 2022.
Up to 270 jobs will be created in the design stage of the $50 billion project to build 12 submarines, after the initial design work is completed in France.
"Undertaking the detailed design and production planning locally will ensure our sovereignty goals are met, in a smooth transition to the construction of the submarines in Adelaide," Prime Minister Malcolm Turnbull and Defence Minister Marise Payne said in a statement.
The fleet of diesel-electric submarines will be built in SA by French naval contractor Naval Group, and will be based on its existing Barracuda model.
Construction of French-designed submarines is expected to begin in Adelaide in 2022.
