Kevin Rudd is Australia's ambassador to US

The appointment was announced by Prime Minister Anthony Albanese on Tuesday.

Mr Albanese said the former Labor leader would bring "unmatched experience" to the ambassadorship and be a major asset to the Australia-US relationship.

"Kevin Rudd is an outstanding appointment," he told reporters in Canberra.

"He brings a great deal of credit to Australia by agreeing to take up this position as a former prime minister, as a former foreign minister, as someone who's been head of the Asia Society and as someone who has links with the global community."

Dr Rudd was Australia's 26th prime minister from 2007 to 2010 and took the job again in 2013 before Labor lost government. He was foreign minister between 2010 and 2012.

He was ousted as prime minister by Julia Gillard, who was then herself ousted by Dr Rudd.

Mr Albanese was a cabinet minister in the Rudd and Gillard governments.

In a statement, Dr Rudd said he was greatly honoured by the nomination.

As head of the Asia Society, Dr Rudd has a strong knowledge of the US and China as well as having extensive links to the global community.

He has also been critical of former US president Donald Trump but in a statement about his appointment Dr Rudd said he had built relationships across the political spectrum.

"Over the past decade, I have had the pleasure of building relationships with Republicans and Democrats across politics and have developed close personal ties with American business, civil society and the media," he said.

"(Australia's) national interest continues to be served ... by the deepest and most effective strategic engagement of the United States in our region."

Liberal senator Simon Birmingham said Australia's new US ambassador would need discipline, sensitivity and drive to advance the AUKUS defence partnership.

"In appointing former prime minister Rudd, Prime Minister Albanese has personally chosen a friend and confidante, a former parliamentary and ministerial colleague and someone in whom Mr Albanese clearly has faith and confidence," Senator Birmingham said.

"Above all else, the coalition looks to (Dr) Rudd ... to deliver on Australia's national interests first and foremost."

But Mr Albanese said it was "no accident" the government had appointed two former foreign ministers as ambassadors to the UK and US as the security alliance progressed.

In September, former Labor minister Stephen Smith was announced as Australia's next High Commissioner to the United Kingdom and is expected to start in the role next year.

Senator Birmingham paid tribute to the outgoing ambassador, former Liberal MP Arthur Sinodinos, who had worked across the Trump and Biden administrations.

Mr Sinodinos congratulated Dr Rudd on Twitter and said there was "plenty to get on with" as the US-Australia relationship went from strength to strength.

Dr Rudd said he looked forward to continuing the work of his predecessor to strengthen the bonds between Australia and the US.

Former prime minister Malcolm Turnbull - who rejected Dr Rudd's bid for the role of United Nations Secretary-General in 2016 - congratulated the new ambassador and said it was a "great appointment".

Dr Rudd is expected to begin his new role in early 2023.

Mr Albanese plans to visit the US next year and President Joe Biden will travel to Australia for the Quad leaders' meeting.

Australian Associated Press