An Australian manufacturing company has secured a contract to build two more warships for the US Navy.
Austral has already delivered eight ships to the United States, and will now build two more in Western Australia.
The company announced the cost of the contract for both ships cost $1.6 billion.
"Austal Limited today announced that it has been awarded construction contracts by the US Navy to build two additional Independence class Littoral Combat Ships," the statement read.
"These ships will be the sixteenth and seventeenth ships in the class.
"The 127m, frigate-sized vessel was originally designed in the Austal centre for excellence in maritime design, based in Henderson, Western Australia. The vessel design has been transferred to Austal USA and build is undertaken in the Austal purpose built shipyard based in Mobile, Alabama USA," it added.
Austral has delivered nine independent class littoral combat ships to the US Navy.
"I encourage other Australian companies to get in touch with the Defence Export Office to find out what support is available to them," Defence Industry Minister Steve Ciobo said on Thursday.