A $12 billion funding pledge aimed at boosting Australia's naval capabilities is part of the "biggest peacetime increase" in defence spending, the government says.

The money will be funnelled into constructing docks and shipbuilding facilities for the AUKUS submarines in Western Australia.

The announcement comes as the Trump administration reviews the trilateral security deal with Australia, UK and the US and puts pressure on its allies to boost defence spending.

Prime Minister Anthony Albanese is due to fly to the United States next week for the United Nations General Assembly, where a face-to-face meeting with Donald Trump may be on the agenda.

The $12 billion will go towards the delivery of a Defence precinct within the maritime hub on Cockburn Sound in Perth's south.

The design of

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