Australia should brace for a strong response by China after reports the Federal Government was in talks about strengthening US military capability in the Northern Territory, an expert has warned.

"Australia should expect a large amount of rhetoric from state-backed media or a foreign ministry spokesman," Dr Coyne said.

Acting US ­ambassador to Australia Mike Goldman said the closer links "just makes sense" in light of the "new geostrategic context" in the Asia Pacific region.

Australia is in talks with Washington to build US-designed missiles on home soil and to store a stockpile of American munitions in the NT, as tensions between China and the West soar.

While nothing has been finalised, Prime Minister Scott Morrison announced in March the government plans to shell out $1billion to start producing hi-tech guided missiles in Australia.

#redefiningAnzus

A US Marine in the NT has tested positive for COVID-19 while in quarantine.

The 19-year-old man arrived in Darwin on May 9 and tested positive in the past 24 hours.

The patient is asymptomatic and is under the care of NT Health at the NT Centre for National Resilience.

The total number of cases diagnosed in the Northern Territory is 172.

All cases have been related to international or interstate travel, with no cases of community transmission.

Australia will invest $582 million to improve bases and training areas in its Northern Territory that are used by a rotational force of U.S. Marines, the country’s Defence Department announced Wednesday.

The country’s defense minister, Peter Dutton, said the upgrades will ensure that the Australian Defence Force delivers world-class training and engagement with allies and other nations through joint exercises, including with the Marines.

The announcement comes amid deteriorating relations between Australia and its largest trading partner, China.

“These new initiatives should help to make northern Australia an even more attractive location for many types of training and exercising by United States forces,” according to Ross Babbage, a former Australian assistant defense secretary.

Australia will spend A$747 million ($580 million) to upgrade four military bases in its north and expand war games with the United States, Prime Minister Scott Morrison will say on Wednesday.

An airstrip in the Northern Territory will be lengthened to support larger aircraft, firing ranges overhauled and new training facilities set up for defence personnel and U.S. marines, according to extracts of the announcement seen by Reuters.

“Working with the United States, our allies and Indo-Pacific neighbours, we will continue to advance Australia’s interests by investing in the Australian Defence Force,” Prime Minister Scott Morrison will say.

Australian Defence Minister Peter Dutton on Sunday said a conflict between China and Taiwan “should not be discounted”.