The Australian military is allotting more than $600 million for a new army and navy helicopter training system.

The allotment, which includes about $175 million for new and refurbished facilities at HMAS Albatross, the base where the system will be located, comes with Department of Defense approval for procuring a new training system.

"This (system) will deliver a fully integrated modern training environment with both in-flight and virtual environments on contemporary twin-engine helicopters and flight simulators," Minister for Defense David Johnston said, "... (and) will prepare both Navy and Army for the new generation of advanced combat helicopters such as the Tiger Armed Reconnaissance Helicopter, MRH-90 Taipan, MH 60R Seahawk Romeo and our new CH-47F Chinook Foxtrots."

Boeing Defense Australia has been named the preferred partner for the Helicopter Aircrew Training System, or HATS, will include purpose-designed syllabi based on 15 Airbus Helicopter EC-135 twin-engine 'glass cockpit' training helicopters; three full-motion Thales EC 135 flight simulators and addition of a flight deck to the navy's new sea-going training vessel.

Final contract negotiations with Boeing for the system are expected to finish soon.

Johnston emphasized the benefits of joint training, including a reduced training burden on operational aircraft and enhanced Navy and Army operations from new amphibious ships.

"Defense will also achieve a significant efficiency now that all Army and Navy aircrew will do their initial helicopter training in the one location," he said.

"Being based at Albatross will also bring the advantage of aircrew being able to train in realistic conditions at sea including ship deck-landing and search and rescue skills."

HATS is expected to get initial operating capability status in late 2018 but the systems will begin to receive students before then, the Department of Defense said.