The tender is for the Pacific Patrol Boats Replacement Project, involving the construction of up to 21 steel-hulled patrol vessels and maintenance of the vessels over 30 years.
Construction of the vessels will take place at Henderson, with maintenance to be done at the Austal facility at Cairns, Queensland.
About $500 million of the tender will be directed to Austal in Henderson to build the vessels, with the remainder towards maintenance.
The vessels will replace the existing fleet, used to assist Pacific Island countries to take an active part in securing their own extensive Exclusive Economic Zones.
Austal chief executive David Singleton said he expected contract documentation to be completed in the next few weeks.
“I am delighted that we have been selected as preferred tender, adding to our long history of constructing patrol boats at our shipyard in Henderson,” he said.