The $2.5 billion agreement is the first time the Australian technology has been sold overseas.
The technology allows for a radar system to detect targets at a longer distance than traditional radars.
The deal was signed in Canberra on Monday between the two countries.
Canada's Secretary of State for Defence Procurement, Stephen Fuhr, said the deal formalised Canada and Australia's commitment to deeper co-operation in defence and security, critical minerals, artificial intelligence, energy, and investment.Â
"We've stood shoulder to shoulder for generations as the world adjusts to its new strategic and economic realities," Mr Fuhr told reporters in Canberra.
"I can't think of a stronger partner to work with more than Australia."
Defence Minister Richard Marles said the technology would be used for multiple purposes by Canada.
"Just like Australia, Canada has large areas to surveil and so Canada will use this to engage in surveillance over the Arctic," he said.
"What this really means is that Australia and Canada are now partners in terms of the future development of the over-the-horizon radar."
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