Government sources said a decision has been taken to include Japan in the bilateral exercise.
"A joint invitation will be sent soon asking the Japanese Navy to be part of Malabar, 2015. Further modalities are being worked out," the sources said.
The exercise is slated to be held in October in the Bay of Bengal.
'Malabar' is an annual naval training exercise conducted by Indian and American navies, which includes fighter combat operations from aircraft carriers and other manoeuvres.
The decision comes after the three countries held their first-ever high-level trilateral dialogue last month which was attended by foreign secretary S Jaishankar, Japanese vice foreign minister Akitaka Saiki and Australian secretary of the Department of Foreign Affairs and Trade, Peter Varghese.
While they discussed a range of issues, maritime security, including freedom of navigation in the South China Sea and trilateral maritime cooperation in the Indian Ocean and Pacific Ocean, topped the agenda.
Asserting that an aggressive posture was a matter of grave concern to his country, Saiki had said the issue was discussed at length.
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