Australia's Defence Minister Richard Marles said the two countries would sign a status of forces agreement making it "much easier for our defence forces to operate from each other's countries".

Australia will join Germany's plan to build an "early warning system for space", which Pistorius said was a response to Russia and China's growing capability to blind and destroy satellites.

Germany intends to deploy an "independent global network of surveillance sensors" to defend its systems, he added.

Australia will also add missiles from German company TDW to its expanding domestic manufacture of guided weapons, designed to hedge against shortages in the Indo Pacific as the Ukraine and Middle East conflicts strain global supply.

Pistorius has emphasised shared interests among mid-sized countries in Europe and the Indo Pacific to "uphold international rules", and protect trade routes, energy supplies and security, while visiting Japan, Singapore and Australia this week.

"Security in Europe and security in the Indo Pacific are two sides of the same coin," he said in a speech at the National Press Club in Canberra, where he highlighted Beijing's support of Russia's war in Ukraine.

The US and Israel's war with Iran is an example of how international rules have come into question, he said, adding the immediate focus must be how to end the war.

"We don't want to get sucked into that war," he said.

"What concerns me the most about that war is there was no consultation, there is no strategy, there is no clear objective and the worst thing from my perspective is there is no exit strategy," he said.

Germany would potentially be willing to join an operation to secure navigation in the Strait of Hormuz after a ceasefire, he said.