The US president nominated ex-Virginia representative David Brat for the position, which had been vacant since 2024.
Mr Brat represented Virginia's seventh congressional district in the US House of Representatives for the Republicans.
He made headlines after defeating incumbent US House majority leader Eric Cantor, one of the highest ranking politicians in the country, in a primary election to be the Republican candidate for the seat in 2014.
A member of the Tea Party movement, he won election for the House of Representatives later that year and ended up serving two terms.
He later lost his seat at the 2018 elections to Democrat Abigail Spanberger, who now serves as Virginia's governor.
After leaving congress, he was named dean of Liberty University's school of business in Virginia.
A self-described "free trader", Mr Brat has more recently defended the president's punitive tariff regime, arguing the import taxes were needed to counter other countries' unfair trade practices.
The ambassador position is yet to be finalised as the appointment needs to be ratified by the US Senate.
If successful in his selection, Mr Brat will succeed Caroline Kennedy in the role of ambassador to Australia.
Ms Kennedy, the only surviving child of former Democratic president John F. Kennedy, was appointed under the Biden administration.
Mr Trump had not appointed an ambassador to Australia throughout the first year of his presidency, a similar situation to his first term, where it took him almost three years to appoint someone.
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