Treasurer Wayne Swan has described the appointment of Jim Yong Kim as next president of the World Bank as an excellent addition for the development agency.
The American-Korean extends the US hold on the presidency at the Washington-based institution.
Mr Swan said he was pleased for the first time in history there was more than one person contesting the position.
"While the other candidates were strong contenders, Jim Kim will make an excellent addition to the World Bank," Mr Swan said in a statement.
"I had a warm and productive working relationship with (outgoing president) Bob Zoellick and I am sure this will continue with Jim Kim."
Dr Kim, the 12th president of the 187-nation agency, was a surprise nominee of US President Barack Obama.
He was selected in a vote by the World Bank's 25-member executive board.
Mr Zoellick is stepping down after a five-year term.
