Australia will take stock of its naval fleet to ensure it is ready to work alongside nuclear-powered submarines more effectively once they arrive.
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A review of the surface fleet will be conducted in the latter half of the year.
Defence Industry Minister Pat Conroy said the review will ensure the fleet is fit for purpose when the submarines arrive next decade.
"It will be a short, sharp review just to check that we've got the right structure of our surface fleet to complement the acquisition of nuclear-powered submarines," he told ABC TV on Tuesday.
"We face the greatest strategic uncertainty since World War II, we're facing the biggest regional arms build up since 1945."
The review will be led by retired US vice admiral William Hilarides, retired Australian vice admiral Stuart Mayer and former senior public servant Rosemary Huxtable.
Mr Conroy said Vice Admiral Hilarides would do a good job with the review.
"Even when he was a serving officer in the US Navy, he provided a critical role in supporting our efforts," he said.
"He was instrumental in improving the Collins class submarine to make it the best diesel-powered submarine in the world."
A major review of Australia's defence posture found the force was not fit for purpose in the "missile age".
The independent analysis of the defence structure has led to the government cancelling some land-based contracts to focus on precise, long-range missiles and landing craft that are able to deploy Australian power.
The strategic review noted Australia could no longer rely on its isolated geography to provide enough warning in the event of a major attack.
"More countries are able to project combat power across greater ranges," it said, noting that warfare domains also included space and cyber.
Mr Conroy said he had spoken with regional counterparts in the Pacific ahead of the release of the review.
"One of the six priority areas of the DSR was increasing our regional engagement, particularly in the Pacific," he said.
"The security of the Pacific has to be driven by Pacific nations and where there's a gap in one nations security, the obligation is on the rest of the Pacific to step up, and it's Australia's position."
Nuclear-powered submarines and more precise missiles will underpin Australia's long-range capabilities.
Security expert John Blaxland said Australia's diesel submarine fleet was becoming obsolete due to how easily they can be detected.
"Satellite surveillance coupled with artificial intelligence and drones (make them) detectable once you stick your snort up for recharging," he told AAP.
"If you want to go anywhere, even to get to Melbourne or Darwin, you are detectable. Our once stealthy submarines are no longer stealthy."
Comparatively, nuclear submarines do not need to surface to recharge.
The opposition has criticised the government for kicking the can down the road after it announced the inaugural defence strategy would be unveiled next year.
"If we are in such a dangerous strategic period, as we all agree that we are, we have lost another year of defence preparedness without a guiding strategic document," opposition defence spokesman Andrew Hastie said.
The former SAS soldier also criticised the government for reallocating money to new projects instead of boosting overall funding.
Australian Associated Press
