The federal government has given initial approval for the Defence Department to spend $4 billion on a fleet of new-generation maritime surveillance aircraft.
The maritime patrol and response aircraft would replace the RAAF's fleet of 20 Orion planes, which will be retired in 2018.
The cabinet decision allows the Defence Department to begin formal talks with the US Navy to take part in the development of the new aircraft with manufacturer Boeing.
Final approval by the government would depend on the outcome of those negotiations.
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