"As India seeks to increase cooperation with other countries in the maritime security domain and in the light of increased defence cooperation with Australia, Malabar 2020 will see the participation of the Australian Navy", the government said in a press release.
The drills are expected to be held in the Arabian Sea and the Bay of Bengal later this year, according to New Delhi.
The Malabar series was launched as bilateral India-US exercises in 1992. Japan joined the drills in 2015. Last year, the exercise was held off the coast of Japan.
Australia participated only once in the Malabar drills in 2007.