Los Angeles: An American man has admitted his role in a cocaine trafficking operation that attempted to fool Australian and US authorities by "suspending" the drug in grease and hiding it in household goods.

US prosecutors said Vardges Markosyan, 47, of North Hollywood, faces a life prison sentence after agreeing to plead guilty in the federal court in Los Angeles to conspiring to smuggle approximately 40 kilograms of cocaine to Australia.

Markosyan admitted in his plea agreement that cocaine was suspended in grease and placed in empty air compressors, tankless water heaters, lamp stands, airconditioners and log splitters.

The shipments were then sent via a commercial carrier to Australia, where they were distributed, court documents state.