Australia aware North Korea could fire Victory Day missile

Australia is aware North Korea may use the anniversary of the end of the Korean War to fire another test missile.

Foreign Minister Julie Bishop says the government is receiving reports that equipment is on the move to mark so-called Victory Day.

"The Australian government's position is to ensure no hostile power has the capacity to pose an existential threat to Australia," she told ABC radio on Thursday.

Ms Bishop was unable to confirm separate reports of the Pentagon predicting Kim Jong-un will be able to make a 'reliable, nuclear-capable Intercontinental Ballistic Missile' as early as next year.

The Hwasong-14 missile reached an altitude of 2802 kilometres and hit its target in Japan's Exclusive Economic Zone after 39 minutes. Photo: AP

But she did admit it was deeply concerning.

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"Of course we've been concerned for sometime about nuclear capability in North Korea and that's why we've been standing with the region in calling for North Korea to cease its provocative actions."

Ms Bishop said the government was aware equipment was on the move for the holiday. Source: AP

It follows reports from AFP the Pentagon had picked up signs that North Korea is prepping for another missile test.

Speaking on condition of anonymity, a US Defence official said that if the test goes ahead, it would "probably" occur on July 27, which is the 64th anniversary of the signing of the Korean Armistice Agreement.

The official said the test would be of either an intermediate-range missile or North Korea's intercontinental ballistic missile (ICBM) - known as a KN-20 or a Hwasong-14.

South Korea's news agency Yonhap quoted a government source as saying Seoul had seen North Korea moving transporter erector launchers carrying ICBM launch tubes in North Pyongan province.

"They're setting up for something," a second US defense official said.