Law enforcement and intelligence agencies from both countries will now be able to obtain data from telecommunication companies within each others' jurisdictional borders, two years after the Clarifying Lawful Overseas Use of Data (CLOUD) Act, which authorises the data sharing, first passed US Congress.

Negotiations to land the agreement between the countries have been ongoing since 2018. US government figures had previously raised concerns about how it would interact with Australia's assistance and access laws, which allow spy agencies to force companies to hand over encrypted communications.

Home Affairs Minister Karen Andrews said on Thursday the agreement would both enhance cooperation while also protecting the sovereignty of each country.

"Signing the CLOUD Act Agreement will enable our two nations' law enforcement agencies to share important digital information and data with each other, under carefully defined legal authorities and safeguards," Ms Andrews said.

"It will ensure they have timely access to electronic data to prevent, detect, investigate and prosecute serious crime, including child sexual abuse, ransomware attacks, terrorism and the sabotage of critical infrastructure over the internet.

"This agreement will enhance law enforcement cooperation, but it will also protect the values, principles, sovereignty and long-term economic prosperity of Australia and the US."

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The agreement will now undergo a review process in both Parliament and Congress before it is officially passed.

The Home Affairs Minister is expected to meet with other senior officials and law enforcement partners on Thursday and Friday to discuss challenges in cyber security, safeguarding critical infrastructure and countering terrorism and serious crime.

She will also visit Sri Lanka to discuss regional security and transnational threats before visiting Indonesia next week to co-chair the eighth annual Australian-Indonesian Ministerial Council Meeting.