The man who led the Abbott government's efforts to stop asylum seeker boats reaching Australia will be the nation's next Defence Chief.

Key points: Lieutenant General Angus Campbell is Chief of Army and was the first commanding officer of Operation Sovereign Borders

Lieutenant General Angus Campbell is Chief of Army and was the first commanding officer of Operation Sovereign Borders Chief of Joint Operations, David Johnston, is set to become the Vice Chief of Defence.

Chief of Joint Operations, David Johnston, is set to become the Vice Chief of Defence. ABC understands military leadership was called to Parliament House ahead of PM's announcement

Prime Minister Malcolm Turnbull this afternoon announced Lieutenant General Angus Campbell would replace Air Chief Marshal Mark Binskin in the top Defence job in July.

"The leadership renewal of the Australian Defence Force … will ensure that we have a seamless transition in the uniformed leadership of our defence forces at a critical time in our history, where our forces are engaged in complex and dangerous missions in the Middle East and elsewhere around the world," Mr Turnbull said.

"Coordination with our allies and partners and leadership at the cutting edge of technology is more important than ever.

"I want to congratulate Lieutenant General Campbell … he brings leadership and experience to this vital role."

The incoming Defence Chief thanked the Prime Minister, as well as his predecessor, for the, "great privilege and honour to serve".

"I deeply appreciate the confidence and trust being displayed and given to me by the Prime Minister, the Minister of Defence and the Chief of Defence Force," Lieutenant General Campbell said.

"It is also an extraordinary responsibility to lead and take care of the men and women of the Australian Defence Force."

Lieutenant General Campbell was the public face of Operation Sovereign Borders, where he was best known for not commenting on "on-water" or "operational matters".

He has served as the Chief of Army since 2015.

Lieutenant General Campbell is considered a well-rounded military leader, having spent time as a public servant in the Department of Prime Minister and Cabinet.

There he rose to become Deputy National Security Adviser.

David Johnston becomes Vice Chief of Defence

The Army Chief edged out Vice Chief of Defence Ray Griggs and current Chief of Joint Operations David Johnston to win the role of Defence Chief.

Vice Admiral Johnston has led Australia's operations in the Middle East, fighting against Islamic State, and will now replace Vice Admiral Griggs as the Vice Chief of Defence.

Vice Admiral David Johnston will become the Vice Chief of Defence. ( Supplied: Australian Defence Force )

Vice Admiral Griggs is retiring from his position after more than 40 years in the military.

Major General Rick Burr will take over from Lieutenant General Campbell as Chief of Army.

Air Vice Marshal Mel Hupfeld will take up Vice Admiral Johnston's current role of Chief of Joint Operations.

The military leadership shuffle also means Chief of Navy Tim Barrett will resign, leaving his position to Rear Admiral Mick Noonan.

The Chief of Defence commands a military of 59,000 uniformed personnel, oversees an annual $34 billion budget and advises the Government on military strategy.

The position comes with a salary of more than $800,000, which is well over the $527,852 the Prime Minister earns.