Former general and defence force chief David Hurley will be Australia's next Governor-General in a decision announced by Prime Minister Scott Morrison on Sunday.

Governor Hurley, currently the 38th Governor of New South Wales, will take up the position in Canberra next year to replace Sir Peter Cosgrove, whose term will be extended to ensure a smooth transition over the NSW and federal elections early next year.

Mr Morrison advised Opposition Leader Bill Shorten of the decision on Sunday morning before making the announcement in Parliament House, saying Governor Hurley was his “first and only choice” for the position.

The appointment is being described as "safe" and "solid" but is expected to spur debate about whether a woman should be named to the position.