Prime Minister Anthony Albanese could meet US President Donald Trump later this month on the sidelines of the United Nations General Assembly meeting and will likely seek assurances about the future of the AUKUS trilateral defence agreement.
The government has announced that the nuclear-powered submarines Australia will gain under the deal would dock at the Henderson Defence Precinct outside Perth, which has received a $12 billion cash injection.
The US could also choose to have its submarines undergo maintenance at the facility.
The AUKUS alliance is under review in the US and the Trump administration has urged allies to increase defence spending to 3.5 per cent of gross domestic product.
Australia's spend currently sits at about two per cent.
Defence Minister Richard Marles has described the $12 billion funding as the "biggest peacetime increase in Australia's defence spending" in history, with total expenditure of $25 billion.
"I'm sure this will be welcomed by the US, but fundamentally it's a really important decision for Australia," Mr Marles told Seven's Sunrise program on Monday.
"It does provide the US with an opportunity to operate from HMAS Sterling south of Perth.
"That's really important in terms of getting more of our allied submarines into the water, more sea days and this is exactly what America wants."
Mr Marles would not say if or when Mr Albanese and Mr Trump will meet, but did add that he was sure that "at some point in the not-too-distant future there will be a meeting between our two leaders".
Former Australian Ambassador to the United States Arthur Sinodinos noted the significance of announcing the boost ahead of a possible meeting with Trump.
"The timing would be, I think, pitched to lay the groundwork and have something to put on the table with the president," he told AAP.
In return, Mr Albanese would be seeking assurances from the president about his support for AUKUS, Mr Sinodinos said.
"While we had indications of support from others in the administration, it's important for the prime minister to hear it directly from the president," he said.
It also makes Australia a much more valuable ally, according to the Australian Strategic Policy Institute defence strategy director, Mike Hughes.
"It's making up for almost a complete lack of investment in Australia's ability to build, maintain, sustain and repair vessels, particularly naval military vessels," he said.
"With the international geopolitical environment deteriorating in the way it is, Australia needs to invest in these sovereign capabilities, given we've spent decades essentially free riding off of others."
Opposition defence spokesman Angus Taylor said the additional spending was overdue but didn't go far enough to support the rotation of US and UK submarines until late into the 2030s.
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