AUSTRALIA should lease US submarines and allow US fighter squadrons to be based on its soil, a report says.

Colonel John Angevine's report for the Lowy Institute saus Australia is out of touch with regional security risks and cannot defend itself on its own.

The report warns Australia must return to a more multilateral approach to the Asia Pacific region, saying its independent approach could be weakening the ANZUS alliance.

Col Angevine's report recommends Australia reconsider plans for the $8 billion air warfare destroyers and scale back the proposed number of new submarines, instead leasing American subs and basing US F-22 Raptor squadrons here.

Australia also should recruit another 4000 army troops, saying Defence is preparing for large-scale conflicts that are least likely to happen, his report says.

Originally published as Call to let US subs defend our shores