More United States troops will train in Australia, starting next year with a force of up to 250 Marines that will be eventually expanded to a force of 2500.
Prime Minister Julia Gillard made the announcement on Wednesday alongside President Barack Obama, saying the plan would build on the 60-year-old ANZUS alliance between the two nations.
The expansion of the existing collaboration between the Australian Defence Force (ADF) and the US Marine Corps and US Air Force will allow America to enhance its presence in the Asia-Pacific region.
The deployments of a company size rotation of 200 to 250 Marines at Darwin's Robertson barracks in the Northern Territory for six months stints will begin in mid-2012.
"Over a number of years we intend to build on this relationship in a staged way to a full force of around 2500 personnel, that is a full Marine Air-Ground Task Force," Ms Gillard told reporters in Canberra.
She said US aircraft would make greater use of RAAF bases in the NT and the US would also preposition some equipment and supplies in Australia to support training activities at ranges including Bradshaw, Delamere air weapons range and Mount Bundey.
As well, the US would probably send more warships, including nuclear powered ships and submarines through the Australian naval base at HMAS Stirling in Western Australia.
"Taken together these two initiatives make our alliance stronger. They strengthen our co-operation in our region," Ms Gillard said.
Ms Gillard said the ADF will increase its capabilities by training with the US Marines.
"It will mean that we are postured to better respond together along with other partners in the Asia-Pacific to any regional contingency including the provision of humanitarian assistance and dealing with natural disasters," she said.
President Obama said the US had no stronger ally than Australia and the alliance would be indispensable to their shared future.
"These rotations which are going to be taking place on Australian bases will bring our militaries even closer and make them even more effective," he said.
"It will enhance our ability to train, exercise and operate with allies and partners across our region and that in turn will allow us to work with these nations to respond even faster to wide range of challenges including humanitarian crises and disaster relief as well as promoting security co-operation across the region."
Opposition Tony Abbott welcomed the plan to give US troops more access to Australian military bases, saying it continued the work begun between the US and Australia under the Howard Coalition government.
"This is in Australia's security interests and will assist the US, the bedrock of global security and stability, in its objectives of maintaining a strong military presence in the Asia-Pacific region and of dispersing its forces," he said in a statement.
Greens leader Bob Brown said while his party welcomed the president's visit, plans to increase training of US troops in Australia should be subject to a parliamentary debate.
"Australia should have an independent relationship with its neighbours, its own region and the world, on its own terms," he said in a statement.
"Any penalties for other regional relationships of the increases troop presence should be fully scrutinised by parliament first."
A Lowy Institute poll earlier this year found strong support for the ANZUS alliance, with 82 per cent of Australians declaring it very important or fairly important for national security.
On the issue of permanently basing some US forces in Australia, a majority - 55 per cent - were in favour.
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