Mathias Cormann will be vying to become head of the Organisation for Economic Co-operation and Development when he leaves politics at the end of the month.
Prime Minister Scott Morrison announced the nomination of his finance minister for the position of OECD secretary-general before current Secretary-General Angel Gurria retires next year.
"I can think of no finer candidate that Australia can put forward with his experience, with his skills," Mr Morrison told reporters in Canberra on Thursday.
The West Australian senator was due to retire at the end of the year, but that has been brought forward to the end of October so he can begin his bid for the role at the Paris-based institution.
Prime Minister Scott Morrison speaks during a press conference at Parliament House in Canberra. Source: AAP
Senator Cormann, who has held the position as finance minister since the coalition came to power in 2013, said the nomination was a great honour and thanked the prime minister for showing faith in him.
"The OECD is without any doubt one of the most consequential international economic policy and governance bodies in the world today," he said.
"Through its work over the past six decades, it makes a difference to the lives, the daily lives, of billions of people all around the world."
He intends to leave for Europe in November to start promoting his candidacy.
The senator has worked with three prime ministers - Tony Abbott, Malcolm Turnbull and Mr Morrison. He has also worked with three treasurers - Joe Hockey, Mr Morrison and Josh Frydenberg.
Deputy Prime Minister Michael McCormack, Prime Minister Scott Morrison and Senator Matthias Cormann pictured during Senate proceedings in July, 2019. Source: AAP
He helped Mr Frydenberg put Tuesday's budget together that sees the deficit balloon to $213.7 billion and debt reach $1 trillion.
Asked if this was the budget he wanted to leave on, Senator Cormann said: "It's a budget that Australia needs right now, given that we've been hit by the COVID recession."
It was in sharp contrast with his first budget with Mr Hockey, which aimed at getting Labor's "debt and deficit crisis" under control.
Mr Morrison took the opportunity to also announce the appointment of Senator Simon Birmingham to replace Senator Cormann as both finance minister and leader of the government in the Senate, while retaining his current role of trade minister.
Employment Minister Michaelia Cash will become the new deputy leader of the government in the Senate.
A wider ministry reshuffle to occur after parliament rises for the year on 10 December.
