Anthony Albanese is open to Australian troops serving in peacekeeping operations in Ukraine as US President Donald Trump suspends aid to the war-torn nation following his spat with Volodymyr Zelenskiy.
The position follows a confrontation between Mr Trump and the Ukrainian president at the White House where Mr Zelenskiy was criticised for not being grateful for Washington's support in its defence against Russia's invasion.
Washington has not confirmed the amount of aid affected, or how long the pause will last.
The prime minister and Opposition Leader Peter Dutton both back the Ukrainian president following the heated exchange.
Mr Albanese said the government had not yet been approached with any requests, but was "open" to potential peacekeeping operations.
"There are proposals being discussed. If a request is made, then we would give consideration to it," he told reporters in Sydney on Tuesday.
"Australia has historically played an important role in areas, including in Africa, in Cyprus, in a range of peacekeeping areas.
"We want to see peace in Ukraine. But we want to make sure that the illegal, immoral actions of Russia are not rewarded, and that Vladimir Putin and his designs - which are imperialistic, not just on Ukraine, but on other countries - are not rewarded or encouraged."
Ukraine's ambassador to Australia Vasyl Myroshnychenko urged nations to stand by his country in its fight.
"Whether one likes it or not, America is changing its role in the world," he said.
"It's up to the world to step up in the name of democracy.
"Ukraine is doing that and we are grateful for Australia's increased willingness to do so."
On the divergence between Australia and the United States, Mr Albanese said the alliance remained important to the nation.
"Australia determines our foreign policy," he said.
"We do it in Australia's national interests. And it is in Australia's national interest to stand with Ukraine, and that's what my government is doing."
Australia has committed $1.5 billion in aid to Ukraine since Russia's full-scale invasion three years ago.
