CANBERRA - Australia's largest joint military training exercise with US begins on Monday, with about 14,000 US and 8500 Australian troops participating in the training in real world scenarios on land, air and sea until July 29.

These personnel will take part in simulated battles at Shoalwater Bay near Rockhampton, and other sites in Queensland and the Northern Territory. There will also be 30 warships in the Coral Sea.

Joint Task Force Commander, Vice-Admiral Scott Van Buskirk, Commander of the US 7th Fleet, said the exercise was important for Australia and the US to maintain close military ties.

"By exercising together we will increase interoperability, flexibility and readiness which will help us maintain peace and stability in the Pacific," Vice Admiral Van Buskirk said in a statement released on Monday.

"We're continuing to work together to protect our interests, provide humanitarian assistance and share information."

The US Ambassador to Australia, Jeffrey Bleich, said there is a possibility of a greater US military involvement in Australia.

Bleich, who is visiting central Queensland for the start of the exercise, said military issues were discussed in recent talks between US Secretary of State Hilary Clinton and the Australian federal government.

"One possibility would be to have more equipment stored here, the chance to do more exercises like Talisman Sabre," he told ABC News on Monday.

"We're looking at all of those as serious options and certainly the Northern Territory and other parts of Australia are in the mix. "

Australian Defense Force also said the Talisman Sabre exercise is Australia 's largest joint military training exercise, and it is important to the security of the region.

This year's Talisman Sabre exercise involves a number of non- military organizations, so that they can try to make the exercises as realistic as they possibly can.