Kathy Klugman is taking over from Andrew Shearer as Office of National Intelligence chief. Photo: Mick Tsikas/AAP PHOTOS

A leading foreign affairs adviser to Anthony Albanese is set to become the first woman to lead one of the country's top intelligence agencies.

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Kathy Klugman has been appointed director-general of the Office of National Intelligence.

The agency is responsible for advising the prime minister and the federal government on matters of national security and intelligence.

Ms Klugman has previously been the prime minister's principal adviser on international affairs sin

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