Visiting senior US military officers believe Australia is a "pot of gold at the end of the rainbow", as they eye off this continent's "prime" geography for future space operations.

General Shaw has warned a conflict in space in the next few years is a very real prospect, saying potential adversaries have already shown they can successfully shoot down satellites.

Australia's own Defence Space Command was only formally stood up in March, but General Armagno says this country already has the natural advantage of its southern-hemisphere geography and potential launch sites close to the equator.