Prime Minister Scott Morrison is preparing to appoint Senator Arthur Sinodinos as the replacement of Joe Hockey as US Ambassador.

Senator Sinodinos will take on the role is the nation’s top international envoy.

Mr Hockey has served as Australia’s representative in Washington since 2016 but will return to Sydney when his posting expires at the start of next year.

READ MORE: Arthur Sinodinos discusses the Coalition’s prospects in upcoming federal election

Senator Sinodinos will take up the post at a challenging time, just as the Democratic presidential primaries begin.

In the past, Senator Sinodinos served as Malcolm Turnbull’s cabinet secretary but was forced to stand down to undergo treatment for non-Hodgkin lymphoma. He has since made a full recovery and was widely tipped to return to cabinet under Mr Morrison.