The country's $50 billion future fleet of submarines could be calling Newcastle home.
The Daily Telegraph reports a New South Wales port is being considered to house the 12 Barracuda submarines, with Defence sources confirming Newcastle and Wollongong's Port Kembla are being looked at.
Sydney is reportedly too cramped and costly to build a new site.
Australia's submarines have been based in WA for nearly 20 years, however it's believed the government wants an east coast port due to regional instability, mainly in the South China Sea and the Korean peninsula.
A decision could be a long way off though, with the first French-built submarine unlikely to be ready until 2030.