Scott Morrison is set to announce a major international security arrangement with the US and UK which is designed to counter the rise of China - and will see the nation go nuclear for the first time.
The new partnership is likely to mean Australia will walk away from its controversial deal to spend billions buying French diesel-powered submarines, with Australia likely to make the switch to nuclear-powered subs with help from its two key allies.
This would be the first time Australia has ever embraced nuclear power.
The new security partnership between the three allies is also being announced by US President Joe Biden at 5pm local time, with Mr Morrison due to speak at 7am AEST.
The tripartite security group, known as AUKUS, will allow the three allies to share information in artificial intelligence, cyber, underwater systems and long-range strike capabilities, according to Politico, citing a White House official and congressional staffer.Insurance Loans Mortgage Attorney Credit Lawyer
The move towards a nuclear Australia has been described as 'China's Worst Nightmare' in a strategic bid to counter its influence in the region - especially in the South China Sea.
Australia is set to follow its allies the US and UK which both use nuclear technology after it was speculated to tear up the $90b submarine project with France
Pictured: The USS Rafael Peralta (DDG 115) is seen firing the 5-inch gun for Naval Surface Fire Support during Exercise Talisman Sabre 2021 in Queensland
Australia's relationship with China has become increasingly hostile ever since Mr Morrison demanded an inquiry into the origins of the Covid pandemic, which originated in the Chinese city of Wuhan in late 2019.
Arbitrary bans and trade tariffs were imposed on billions of dollars worth of key Australian exports to China including barley, wine, beef, cotton, seafood, coal, cobber and timber.
Australia is now set to follow its allies the US and UK, who both use nuclear technology, with speculation it would tear up the $90billion submarine project with France.
Senior Australian ministers were involved in a flurry of late-night meetings on the top secret shipbuilding program on Wednesday, with Anthony Albanese and other senior Labor MPs briefed on the matter.
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The move has been described as 'China's Worst Nightmare' in a strategic bid to counter its influence in the region
China has inflamed tensions in the South China Sea in recent years by expanding its claimed territory, to the objection of its neighbors in the Asia-Pacific
The Prime Minister reportedly held concerns French owned shipbuilder Naval Group would not be able to deliver submarines until 2030 with deadline and price disputes.
Mr Morrison reportedly tried to speak with the French President Emmanuel Macron on Wednesday regarding the new deal.
News of Australia's decision was instead reportedly disclosed to Paris by the secretary of the Defence Department, Greg Moriarty, reported the ABC.
The Australian Naval Institute has repeatedly criticised the troubled French submarine project while welcoming the use of nuclear technology.
'With regional tensions increasing, then building our own one-off type submarines which will arrive in the early 2030s is not good enough. We have no guarantee they will work,' the article stated.
'When we built the Collins class submarines (at exorbitant expense) they did not work properly for several years.
'Instead we should buy 12 of a proven design which is already in the water. We want long-range hunter-killer vessels. We also want them to be able to stay submerged for long periods to avoid detection. Nuclear does this in spades.'
It is speculated the US had planned to operate some of its nuclear submarines from Perth's naval base HMAS Stirling.
Prime Minister Scott Morrison (pictured) is set to make an announcement on Thursday morning over the country's international security initiative
The UK, which also uses nuclear technology is expected to support Australia with the move in the three-nation security pact.
Sources say plan is a move to counter China's rise in the technology and military sectors.
It is one of a string of initiatives designed to demonstrate Washington's global role after the chaotic withdrawal from Afghanistan.
Biden will next week host his first in-person summit of leaders of the Quad nations — made up of Australia, India, Japan and the United States — which have been coordinating against China's growing reach.
'Hosting the leaders of the Quad demonstrates the Biden-Harris administration's priority of engaging in the Indo-Pacific, including through new multilateral configurations to meet the challenges of the 21st century, said Press Secretary Jen Psaki as she announced the September 24 summit in a statement.
2019: Australian intelligence services conclude that China was responsible for a cyber-attack on Australia's parliament and three largest political parties in the run-up to a May election.
April 2020: Australian PM Scott Morrison begins canvassing his fellow world leaders for an inquiry into the origins of the coronavirus pandemic. Britain and France are initially reluctant but more than 100 countries eventually back an investigation.
April 15: Morrison is one of the few leaders to voice sympathy with Donald Trump's criticisms of the World Health Organization, which the US president accuses of bias towards China.
April 21: China's embassy accuses Australian foreign minister Peter Dutton of 'ignorance and bigotry' and 'parroting what those Americans have asserted' after he called for China to be more transparent about the outbreak.
April 23: Australia's agriculture minister David Littleproud calls for G20 nations to campaign against the 'wet markets' which are common in China and linked to the earliest coronavirus cases.
April 26: Chinese ambassador Cheng Jingye hints at a boycott of Australian wine and beef and says tourists and