Newcastle shipbuilder Forgacs Engineering has signed a contract for a 30-metre landing craft, which will be given to Tonga.
The Newcastle Herald reports that Forgacs will undertake the work for the federal Defence Materiel Organisation.
CEO Lindsay Stratton would not say how much the contract was worth, but it would ensure full-time jobs for 30 specialists up until the end of March 2015.
"By comparison to what we're used to doing, it's quite a small vessel, but it's quite important for Forgacs, from a strategic perspective," he told the Herald.
Forgacs warned earlier in the year that if naval contracts weren’t brought forward, it could be the first casualty of the “Valley of Death”. This would come at a cost of 900 jobs.
"This is the first bit of good news that we've had for a while," said Stratton.