The Australian government will discuss with French authorities the staging of annual Anzac Day services in Villers-Bretonneux.
A special 90th anniversary dawn service was held in the French town last month.
The Battle of Villers-Bretonneux was fought in April 1918 when Australian forces ejected German defenders from the then village, but at a cost of 1,200 dead.
Prime Minister Kevin Rudd says an annual dawn service on Anzac Day will be a recognition that 300,000 Australians served on the western front in France during World War I, with some 50,000 losing their lives.
"Alan Griffin, the minister for veterans' affairs, has been in my ear about this for some time," Mr Rudd told the Nine Network.
"His recommendation to me is that we proceed and that is that.
"There will be an annual dawn service at Villers-Bretonneux from next year on."
The principal Australian War Memorial in France is located at the town, along with the graves of 770 Australian soldiers.
Mr Rudd says Gallipoli, from where Anzac Day originated, is important for familiar reasons.
"This (Villers-Bretonneux) provides an additional opportunity for Australians to honour our war dead," he said.
"(Mr) Griffin will be organising this in consultation with the town administration of Villers-Bretonneux to make sure that it all works for them as well.
"It is their town."
