The collaboration under an agreement is centered on Saab's 9LV Mk3 combat management system fitted on Royal Australian Navy ships.
The 9LV MK3 system integrates situational awareness and weapon control and provides command and control capabilities. The system interfaces with radars, guns, navigation sensors, data link processors and other systems.
"Saab's particular skills in maritime combat systems is a perfect fit with the requirements of DSTO's development of these systems," said Defense Science Technology Organization Chief Defense Scientist Alex Zelinsky.
"Defense's capability requirements are often too complex for any one research organization to tackle on its own and collaborative approaches are required to find the right solutions."
Added Saab Systems Managing Director in Australia Dean Rosenfield: "Saab has had a long relationship with DSTO and the new alliance continues to provide great opportunities for our staff to collaborate on research developing the next generation of maritime and land C4I systems."
Additional details of the agreement were not disclosed.