It comes as the influential defence think tank farewells Peter Jennings after a decade of running the institute.

Mr Bassi was announced on Tuesday evening as his successor in a statement by Defence Minister Peter Dutton.

Chosen for his "significant national security experience and wide networks", Mr Bassi's most recent role was within Foreign Affairs Minister Marise Payne's office as her chief of staff.

He also served as a national security adviser to former prime minister Malcolm Turnbull and in former senator George Brandis' office while he was the attorney-general.

He has also been noted for his work on developing Australia's Magnitsky laws with the late Labor senator Kimberley Kitching and intelligence committee chair Senator James Paterson.

Senator Payne announced on Tuesday the laws had been used for the first time to sanction 39 Russians accused of having involvement in the death of Ukrainian-born Russian lawyer Sergei Magnitsky.

Murmurs of the appointment over the first few months of the year sparked criticism from the opposition, who considered it a political appointment.

Labor defence spokesperson Brendan O'Connor said the government's announcement showed it had "disregarded" ASPI's recommendation, opting to choose a more politically favourable one instead.

The institute, which was established in 2001 under the Howard government, is intended to operate independent of government.

But its top appointments are determined by a government-appointed council.

Mr Jennings, who was appointed in 2012 under a Labor government, said it was crucial the think tank remain independent of government.

"It can't afford to be partisan in the way that many private think tanks are," he wrote last year for its 20^th anniversary.

"That will still leave scope for engaged debate on policy options."

Four ASPI council members have also been announced, including John Anderson, a former deputy prime minister during the Howard era.

Former Abbott-era minister Michael Keenan also joins the council, along with cyber security expert Rachael Falk and military and veterans adviser Catherine McGregor.