Austal signs $280 million patrol boat deal

West Australian shipbuilder Austal and the Commonwealth have formally signed a deal to build up to 21 new patrol boats which will be donated to countries in the Pacific region.

Defence Minister Marise Payne said the contract was worth $280 million, with work to start mid-2017 and the first vessel to be delivered in late 2018.

"The existing fleet is approaching its end of service life and will be replaced with a fleet of new Australian-built vessels to assist our Pacific Island partners to continue to take an active role in securing their extensive exclusive economic zones," she said in a statement.