Prime Minister Anthony Albanese has welcomed plans announced by the Canadian PM to buy a multibillion dollar Australian radar system.

Mark Carney, who was sworn in as Canada’s leader last week, announced he was looking to buy a $6.5 billion “over-the-horizon” radar system from Australia, considered some of the most advanced technology in the field.

It follows a first conversation between Albanese and Carney on Tuesday.

The ABC reports it also follows months of discussions among senior officials about exporting Australia’s world-leading radar technology JORN to the US.

Canada, which finds itself in a trade war amid tariffs imposed by US President Donald Trump, saw an opportunity and leapt.

“Our government will be working with our long-standing defence and security partners, Australia, to build a new long range over-the-horizon military radar system,” Carney said on Tuesday (Canadian time).

“This is an investment of more than C$6 billion ($A6.6 billion) in the most advanced and efficient radar system.”

He said the installation “will enable Canada to detect and respond to both air and maritime threats over our Arctic faster and from further away”.

“It will most fundamentally keep all Canadians safe,” Carney said.

Tensions have also risen between the two North American neighbours as Trump has repeatedly threatened to annex Canada as the US’s 51st state – and has his eyes on Greenland.

Albanese said the military purchase would be a chance for Australia to expand its relationship with Canada.

“It’s important that we develop that diverse set of relationships, and Canada is a very important one, we have so much in common,” he said in Brisbane on Wednesday.

“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.

“It’s important that we diversify our trade relationships.”

Unlike traditional radar systems, the “over the horizon” technology allows for monitoring over a wider area.

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

“[Carney] certainly spoke to me about the over-the-horizon radar technology that Canada is interested in purchasing from Australia,” Albanese said.

“It’s important that we develop that diverse series of relationships and Canada is a very important one, we have so much in common.”

Albanese said his discussion with Carney dealt with ways the two countries could work together amid the increasing global uncertainty.

“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 said.

“We have a very separate relationship with Canada and it’s a very good one.”

Defence Minister Richard Marles said Australia’s relationship with Canada did not need to change to counter economic threats from the US.

“We continue to work with Canada. Canada is a close partner. It’s a Five Eyes partner and we’ve been working with Canada before Donald Trump became the president,” he told ABC TV.

“What we’re seeing is Canada working through its own issues in relation to the United States. And that’s, to be honest, a matter between Canada and the US.”

-with AAP