Prime Minister Anthony Albanese has been asked to take part in a NATO security summit for the second consecutive year.
The invitation has been extended as Finland joins the security pact, to the chagrin of Russia, which is already angry at Ukraine's attempts to attach to the alliance.
The Atlantic pact, which is underpinned by the United States, is looking to further co-operation with the Indo-Pacific amid concerns about China's military build-up and increasing aggression in the region - particularly in relation to Taiwan.
Beijing's growing relationship with Moscow has also raised tensions.
Andrew Phelan, a former diplomat who closely observes Australia-China relations, said the summit would allow liberal democracies to strengthen ties in the face of growing authoritarianism.
"This is a great opportunity for us to get together with like-minded democracies and share strategies, share intel, share technology to buttress our security against this kind of practical, unofficial arrangement between China and Russia," he told Sky News.
"The west has been reminding China if they provide any kind of weapons support to the Russian war effort that would be crossing a red line."
Malcolm Davis from the Australian Strategic Policy Institute said the prime minister's attendance was crucial.
He said global tensions had heightened to a level where "the future of the planet really is being determined as to whether it's a world dominated by western liberal democracy and freedom of speech or it's an authoritarian world".
New Zealand, South Korea and Japan have also been invited along with Ukrainian President Volodymyr Zelenskiy.
The summit will be held in Lithuania in July.
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