The Australian Maritime Safety Authority (AMSA) said the search would now focus on an area 1,100 km further north-east in the southern Indian Ocean off the western Australian coast.
It said the new information was based on analysis of radar data from Malaysia of the Boeing 777-200 before contact was lost nearly three weeks ago.
Malaysian officials have concluded that, based on satellite data, the jet flew into the sea somewhere in the southern Indian Ocean. So far no trace of it has been found.
The Beijing-bound jetliner - carrying 239 people, including five Indians, an Indo-Canadian and 154 Chinese nationals - had vanished after taking off from Kuala Lumpur and crashed in the remote southern Indian Ocean.
Using satellite images, several nations have identified objects floating in the sea in that area, but there has been no confirmation as yet that any of them are from the plane.
A statement from AMSA - which is co-ordinating the search - said the latest advice had come from the international investigation team in Malaysia.
It said that the new search area was about 1,850 km west of Perth and covered some 319,000 sq km.
"The new information is based on continuing analysis of radar data between the South China Sea and the Strait of Malacca before radar contact was lost," AMSA said.
"It indicated that the aircraft was travelling faster than previously estimated, resulting in increased fuel usage and reducing the possible distance the aircraft travelled south into the Indian Ocean."
"This is a credible new lead and will be thoroughly investigated today," Australian Prime Minister Tony Abbott said.
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