Defence Minister Robert Hill described the move, which will see up to 70,000 deployed US troops return home over the next 10 years, as a significant global security development.

"The US has consulted closely with Australia over its plans for the global force posture review and we see this initiative as a positive development for both regional and global security," Senator Hill said in a statement.

"It will improve the US capability to contribute to international efforts to defeat global threats such as terrorism and the proliferation of weapons of mass destruction and enable the US to engage more effectively in regional contingencies."

US President George W. Bush on Monday announced the biggest realignment of American forces overseas in more than 50 years.

The crux of the plan will see the strategic placement of smaller more mobile forces.

Plans are too significantly reduce US ground forces in Europe, bringing home two heavy army divisions from Germany and replacing them with a single hi-tech combat brigade about a tenth the size.

Changes are also expected to US deployments in South Korea and Japan.

One of the most significant changes are plans to concentrate US ground forces in the United States, rather than deployed overseas as they have since the end of World War II.

Australia was a staunch supporter of the US-led war in Iraq, contributing about 2,000 personnel to the fight and around 850 troops remain in the region.

Hill said while the changes did not directly effect Australia, the two countries continued to work closely to enhance security cooperation in the region.

WAR.WIRE