Former prime minister John Howard will receive the highest civilian honour a US president can bestow during a White House ceremony next week.
Mr Howard, along with former British prime minister Tony Blair and Columbia's president Alvaro Uribe, has been awarded the Presidential Medal of Freedom.
US President George W Bush will confer the prestigious award on his staunch international supporters in an East Room ceremony on January 13, exactly one week before he leaves office.
Mr Howard says he is honoured personally to receive the award but more so because of the compliment it pays to Australia.
"It's an indication of the very close relationship between our two countries and I'm very pleased that during the time as prime minister I was able to contribute too," he said.
It was also testament to the "very obvious" personal warmth between himself and President Bush.
The Medal of Freedom was established by President Harry Truman in 1945 to recognise civilians for their efforts during World War II.
The award is given to those deemed to have made remarkable contributions to the security or national interests of the United States, world peace, culture, or other private or public endeavours.
"The president is honouring these leaders for their work to improve the lives of their citizens and for their efforts to promote democracy, human rights and peace abroad," White House press secretary Dana Perino said on Monday.
The decision has been welcomed by the Liberal party, but not the Australian Greens who criticised Mr Howard's human rights record during 11 years of his coalition government.
Deputy Liberal Leader Julie Bishop says all Australians should be proud that an Australian prime minister has been recognised by the United States as a great statesman.
"He made an enormous contribution to public life both in Australia and overseas," she told reporters.
Greens senator Sarah Hanson-Young was not so gracious, saying Mr Howard was no Nelson Mandela when it came to human rights.
"I find it ironic that a prime minister who has locked children up in detention, who has refused to apologise to the stolen generations and who has participated in a war in a Iraq that has been a debacle is given a medal for human rights and freedom," she said.
President Bush has awarded 78 medals of freedom during his tenure in office.
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