The aircraft will replace the existing fleet of six CH-47D Chinooks operated by C Squadron of the 5th Aviation Regiment based in Townsville.
The first two aircraft are planned to enter service in 2014, with all seven in service by 2017.
The CH-47Fs purchased for the Australian Defence Force are planned to incorporate some minor Australian-specific mission equipment enhancements including crashworthy crew and passenger seating, the fitment of miniguns and underfloor ballistic protection.
However, the primary aircraft elements will remain consistent with the US Army fleet and thus this country can leverage the benefits of their large fleet for engineering and other support.
The contract to procure the aircraft through the Foreign Military Sales program was signed at a ceremony at the Australian Embassy in Washington on Friday 19 March.
It follows Government approval of Project AIR 9000 Phase 5C announced by Defence Minister John Faulkner on 25 February 2010.