Lance Corporal Hans Sandoval-Pereyra was injured during a vehicle accident during the drill on Saturday near the northern Australia regional hub of Darwin.

He was airlifted to hospital but was unable to be saved.

Thousands of marines have passed through the rotation in Darwin since 2012, in an annual arrangement between long-time defence allies Washington and Canberra.

Commanding officer for the rotation in Darwin, Colonel Russ Boyce, said the marines were saddened by the loss of Sandoval-Pereyra.

"He was a beloved member of our community and our deepest sympathies go out to his family and friends," Boyce said.

"We are extremely grateful to our Australian partners for their valiant efforts to save this young marine's life."

A fellow marine received minor injuries during the accident but has since been released from hospital. An investigation is under way.