Australia should prepare to send military aircraft and ships to the South China Sea to stop China from asserting territorial control across some of the world's most important trading lanes, says a leading defence planner.

The recommendation by Peter Jennings, who chairs the Abbott government's advisory panel for drafting the upcoming Defence white paper, followed vehement denials by both Canberra and Washington that the US plans to put long-range bombers in Australia to deter China.

A US Air Force B1-B bomber during a mission over Syria. Credit:AFP

Those denials came in response to a remark by a top Pentagon official David Shear that "we will be placing additional air force assets in Australia as well, including B-1 bombers and surveillance aircraft", though the denials from both sides left the door open to an increased military presence in Australian in future.