The maker of a South Korean infantry fighting vehicle has been named a preferred bidder in Australia's armored vehicle acquisition project.

According to Seoul's Defense Acquisition Program Administration (DAPA), Hanwha Aerospace, with its Redback IFV, was chosen over German firm Rheinmetall's Lynx KF-41 to be named the preferred bidder.

A DAPA official said the achievement is the result of aggressive negotiations, government support and the global competitiveness of South Korean weapon systems.

A final deal on the Redback would mark the second ground-based military equipment export to Australia after the 2021 deal to supply K9 self-propelled howitzers.

Under the project, the Australian Army seeks to acquire 129 IFV units.

Local media outlet The Australian said the German firm's bid price was lower but that the Redback outperformed the Lynx.