Queen Elizabeth II has approved the posthumous awarding of the Victoria Cross to WWII hero Edward 'Teddy' Sheean, Governor-General David Hurley says.
It comes after Prime Minister Scott Morrison recommended the Ordinary Seaman be awarded Australia's highest military honour earlier this week.
The 18-year-old had less than two years at sea and was serving on the minesweeper HMAS Armidale when it came under heavy attack from Japanese aircraft off the coast of what is now Timor-Leste in 1942.
Sheean is recorded as helping launch life rafts before returning to fire at enemy aircraft, despite the order having been given to abandon ship.
The Governor-General said he had relayed the news to Sheean's nephews on Wednesday, describing it as a momentous occasion for the family.
"In my conversations with them, their pride and emotion was very evident," he said.
He said many Australians had only heard Teddy's story for the first time in the last couple of days.
"A young man serving his nation who chose certain death over the chance of survival to try to save his mates who were in the water," he said.
"Many of us have really been taken back by his courage, his commitment to his mates and his sacrifice.
"The story is inspiring and should inspire us all."
Sheean's story 'stuff of legend'
Mr Hurley said it was an "especially poignant time" with the 75th anniversary of the end of World War II approaching.
"In remembering Teddy, acknowledging his service and honouring his courage, we also preserve the legacy of a generation that has served and shaped our nation," he said.
He said a ceremony would be held in the coming months.
Australia's Chief of Navy Michael Noonan said it was "a great day for our Navy, our nation and for a young Australian sailor who paid the highest price to save his shipmates from certain death".
Sheean's VC was "the first for a member of the Royal Australian Navy," he said.
"Teddy Sheean's story of bravery is well known within our Navy and we have long recognised his heroic and gallant actions.
"This account is the stuff of legend. Sheean's actions on that day, [December 1, 1942], were absolutely among the most conspicuous and most gallant we've seen in our Navy."
The announcement marks the end of a long and contentious campaign to recognise the Ordinary Seaman's efforts through a VC.
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