Australia's third air warfare destroyer will come into service a year ahead of schedule thanks to the streamlining of capability upgrades on the Hobart Class ships.
The Sydney is the final destroyer to be built at the Osborne Naval Shipyard in South Australia.
It was launched early 2018 and is now expected to enter service this year, about 12 months ahead of schedule.
Defence Minister Christopher Pyne said an aviation upgrade during the ship's build was streamlined, fast-tracking the operational schedule.
"Modifications to accommodate the MH-60R Romeo combat helicopter into the Hobart Class were planned to be completed after operational trials," he said.
"The upgrade to the ship's infrastructure to support the Romeo will make it Australia's most advanced warship," Minister Pyne said.
Defence Industry Minister Linda Reynolds said the upgrade was value for money.
"The opportunity for the AWD Alliance to complete the work while the ship was still in-build is testament to the skill and efficiency of the 400-strong shipbuilding workforce at Osborne," Senator Reynolds said.
Like its sister ships, the HMAS Hobart and the Brisbane, the Sydney has a range of about 9000km and a top speed on about 28 knots.
The destroyers have missile decoy technology and harpoon missiles.
A crew of 186 run the 146m long ships, which are powered by a combination of gas and diesel turbines with twin propellers.
The HMAS Hobart was launched in Adelaide in 2015 and commissioned in late 2017.
The Brisbane was launched in 2016 and commissioned in late 2018.