Former coalition government finance minister Nick Minchin will be posted to New York in the plum consul-general diplomatic posting.
Mr Minchin, who left politics for family reasons when his Senate term expired in June 2011, takes up the job in April, the Australian newspaper reported.
It is the position both sides of politics have used to reward former high profile members.
Labor handed the job to former Victorian Premier Steve Bracks but even before he shifted to New York, Foreign Minister Julie Bishop overturned the posting.
When John Howard won government in 1996, he gave this job to former Liberal senator and close ally Michael Baume.
Ms Bishop says Mr Minchin’s long experience as finance minister makes him well qualified for the New York job.
“Consul-general in New York is a vitally important post for business and finance links as well as broader promotion of Australia,” she told the newspaper.