Outsourcing company Serco Group said its Australian subsidiary was in negotiations to operate as a sub-contractor to insurer Bupa Health Services.
The talks came after Bupa was selected by the Australian government to provide services to the country's defence forces.
Serco said the sub‑contract would provide human resources managed services on associated defence bases.
A further announcement would be made at the appropriate time when the sub-contractor negotiations had concluded, Serco added.
At 9:03am: (LON:SRP) Serco Group PLC share price was +0.15p at 114.65p