A new federal agency will be established to carry Defence's ambitious multi-billion dollar nuclear-powered submarine project from "cradle to grave".
Defence Minister Richard Marles says the Nuclear-Powered Submarine Taskforce will change into a new standalone agency to be named the Australian Submarine Agency.
It's expected funding will be announced on Tuesday when the Albanese government hands down its second federal budget.
From the start of July, the agency will be responsible for overseeing and managing key areas within the submarine program, including acquisition, delivery construction, technical governance, sustainment and disposal.
The Canberra-based agency will also enable the necessary policy, legal, non-proliferation, workforce, security and safety arrangements.
The landmark AUKUS deal, revealed in March, will deliver three off-the-shelf US Virginia class submarines to Australia from the early 2030s, pending US Congressional approval.
Another five AUKUS submarines, which bring together UK ship designs with a US combat system, will be built in South Australia from the 2030s.
Mr Marles also revealed an independent watchdog - the Australian Nuclear-Powered Submarine Safety Regulator - is set to be established to regulate the safety and maintenance of the boats with proposed legislation due to be introduced to Parliament later this year.
The Defence Minister described the agency and regulator's establishment as "critical elements" for delivering the program.
"The establishment of the Australian Submarine Agency and the Australian Nuclear-Powered Submarine Safety Regulator are critical elements of delivering this game-changing capability and will ensure the safe and successful implementation of the pathway for Australia's acquisition of nuclear-powered submarines," Mr Marles said.
"The ASA will be responsible and accountable for delivering the ambitious program to acquire Australia's nuclear-powered submarines.
"A specialised and dedicated regulator - which will be independent of Defence and the Australian Defence Force - will ensure we have the highest standards of nuclear safety and radiological protection across the life cycle of Australia's nuclear-powered submarines."
The existing AUKUS submarine taskforce, currently being led by Vice Admiral Jonathan Mead, has around 350 staff and is expected to grow once transitioned.
A director-general will be appointed to lead the agency.
It will continue to be based in Canberra's Brindabella Business Park with staff across other locations, including South Australia, Western Australia, and in the UK and US.
The announcement comes as Prime Minister Anthony Albanese visited the UK port town of Barrow-in-Furness on Wednesday where future AUKUS submarines, known as SSN-AUKUS, will be made.
Australian submarine builders will be sent over to the shipyards to gain experience in building the equipment.