Defence Minister Peter Dutton will confirm the upgrade on Monday after the US government approved the potential purchase last year.
The tanks will replace the army’s 59 Abrams M1A1s,which were bought in 2007 but have not seen combat.
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Australia will also commit to 29 assault breacher vehicles,which are used to clear mines and explosives,as well as 17 joint assault bridge vehicles and an additional six armoured recovery vehicles.
“Teamed with the infantry fighting vehicle,combat engineering vehicles,and self-propelled howitzers,the new Abrams will give our soldiers the best possibility of success and protection from harm,” Mr Dutton said.
“The M1A2 Abrams will incorporate the latest developments in Australian sovereign defence capabilities,including command,control,communications,computers and intelligence systems,and benefit from the intended manufacture of tank ammunition in Australia.
“The introduction of the new M1A2 vehicles will take advantage of the existing support infrastructure,with significant investment in Australian industry continuing in the areas of sustainment,simulation and training.”