The Chinese military has been spying on major war games taking place between Australia and the United States off the coast of Queensland.

In a statement, the Department of Defence said a Chinese surveillance ship has been operating within the Australian Exclusive Economic Zone (EEZ) in the Coral Sea where the joint military exercise was unfolding.

Admiral Harry Harris, Commander, US Pacific Command (left) and Vice Admiral David Johnston, Chief of Joint Operations, unfurl the Talisman Sabre flag at the opening ceremony. Credit:John Feder

The spy ship - identified as a Chinese People's Liberation Army-Navy Type 815 Dongdiao-class auxiliary general intelligence vessel - has remained outside of Australia's territorial waters.

The biennial joint United States and Australia military exercise Talisman Sabre, which involves more than 30,000 defence personnel, started late last month.