Australia on Wednesday announced plans to bolster its naval capacity by deploying a US$1.1 billion (€939 million) fleet of "Ghost Shark" underwater attack drones.

"This is the highest tech capability in the world," Defense Minister Richard Marles told reporters in Sydney.

"Australia is leading the world in terms of autonomous, underwater military capabilities," Marles said.

He did not specify the exact number of the Ghost Sharks that will be manufactured, but said the Australian navy would be provided with "dozens" over the next five years.

The first batch of the domestically developed long-range Ghost Sharks will be delivered to the Australian Navy in January next year, Marles said.

The decision to deploy Ghost Sharks comes as Australia seeks to counter the threat of China's military expansion in the Pacific. 

What do we know about Ghost Sharks?

Marles did not reveal the range of the undersea vehicles, but described them as having "very long range" and stealth capabilities.

The autonomous drones will significantly improve Australia's underwater defense capabilities, complementing a fleet of submarines powered with US nuclear technology, Marles said.

Australia's Navy chief, Mark Hammond, said the drones could be launched from the shore and from surface ships.

"I believe our allies and partners will continue to enjoy a capability advantage in that space provided we invest in capabilities like Ghost Shark and others as well as our crewed systems for years to come," Hammond said.

Edited by: Farah Bahgat