Multi-billion dollar radar buy to boost Canada ties: PM

As the diplomatic relationship between Canada and the US falters due to tariffs imposed by President Donald Trump, Mr Albanese said Canada's purchase was a chance to expand ties with Australia.

"Obviously, there are issues taking place particularly between Canada and the United States that I wouldn't have expected to have been happening in my lifetime," he told reporters in Brisbane on Wednesday.

"We have a very separate relationship with Canada and it's a very good one.

"It's important that we develop that diverse set of relationships, and Canada is a very important one, we have so much in common.

"It's important that we diversify our trade relationships."

Unlike traditional radar systems, the "over the horizon" technology allows for monitoring to take place over a wider area.

Canada is placed to use the technology as part of threat deterrence efforts in its Arctic regions.

"This is a world-leading technology, Australians are smart, we're good at innovation ... and we want to export whenever possible and this will be a significant export if this deal is finalised," Mr Albanese said.

Defence Minister Richard Marles said Australia had also been in talks with the US about selling the technology to the government.

"What is in prospect here is the single biggest defence industry export from Australia in our history. So this is a really, really big opportunity for the nation," he told reporters in Cairns.

"This is some of the best technology in the world in terms of what it can do, and it will greatly contribute to the radar technology that exists in North America."

Opposition Leader Peter Dutton said Canada was a significant ally for Australia going forward in a time of global uncertainty.

"We can work very closely with a number of partners, including, obviously the US, the UK, Canada, New Zealand and others, and I think it's very important for us to do so," he said.

"There is a huge play for us in the defence industry space."