An Australian soldier has been killed and another seriously wounded by an improvised bomb in Afghanistan, the Defence Force has announced.

Defence named the dead soldier as Corporal Richard Edward Atkinson, 22, of the Darwin-based 1st Combat Engineer Regiment.

The soldiers, who were serving with Mentoring and Reconstruction Task Force 2, were on a foot patrol with the Afghan National Army in the Tangi Valley in southern Afghanistan's Uruzgan province.

"Immediately after the blast, Australian soldiers moved quickly to secure the site and help their comrades," acting head of the Defence Force, Lieutenant General David Hurley said.

Lt Gen Hurley said the wounded soldier was in a satisfactory condition in the Tarin Kowt hospital. He said both soldiers' families had been notified.

"I extend our deepest sympathy to Corporal Atkinson's family, his friends and his comrades - the entire ADF and Defence community is deeply saddened by the death of this fine young Australian soldier," Lt Gen Hurley said.

"Corporal Atkinson's mates face some difficult days ahead as they prepare to send him home to his family.

"The Army will take great care of this soldier's family and support them in difficult times beyond."

Tasmanian-born Corporal Atkinson was on his first deployment to Afghanistan.

He leaves behind a fiance, parents in Tasmania and a brother in Western Australia.

Corporal Atkinson's family has released a statement saying he was a dedicated soldier who was looking forward to visiting his family in Tasmania at the end of the year.

They say he will be remembered as a funny man who always put smiles on other people's faces.

Defence Minister Stephen Smith says the news is a blow to Australia and a tragedy for the soldier's family.

"We mourn this loss and our condolences, our thoughts and our sympathy go to his family today," he said.

"He was a fine young soldier cut short at only 22 years of age.

"His death, his loss has been in advancing Australia's national interests and in advancing the international community's interests as it seeks to stare down international terrorism."

Prime Minister Julia Gillard conveyed her sympathies to the family of Corporal Atkinson for their loss.

"He was engaged to be married and I particularly convey my sympathies to his fiance who would be in the depths of grief today," she said.

But Ms Gillard said Australia's commitment to Afghanistan would not waver.

Federal Opposition Leader Tony Abbott says the thoughts and prayers of all Australians are with Corporal Atkinson's family.

Mr Abbott says the incident is another reminder of the dangers of Australia's mission in Afghanistan.

"Every Australian's thoughts and prayers are with his family and friends at this sad time," he said.

"Our thoughts and prayers are also with the family and friends of another Australian soldier severely wounded in the same incident."

Defence says an inquiry will now be held into the incident and its findings will be made public.

Twenty-two Australians soldiers have now been killed since Australia sent troops to Afghanistan in 2001.

The latest incident comes after a special forces soldier was seriously wounded in an accidental shooting during an operation in Afghanistan's northern Kandahar Province last Friday.