About 300,000 rural and regional premises would benefit from Amazon's Project Kuiper filling gaps in the national network from mid-2026.
A rival to Elon Musk's Starlink, Kuiper uses low-earth orbit satellite technology to provide internet from space.
Government ministers labelled Tuesday morning's announcement as a "game-changer".
The Amazon technology will be phased in across the next four years, transitioning from the ageing Sky Muster satellites set to be decommissioned in the early 2030s.
"Whether you live in Sydney or on the edge of a regional town (or) on a remote cattle station, every Australian deserves secure, resilient, fast and affordable broadband," NBN Co chief executive Ellie Sweeney said.
"Those Sky Muster satellites have served remote Australia with distinction over the last decade, but times change and technology evolves, and Project Kuiper is one of the finest examples we think of what's possible, where innovation meets that ambition."
NBN Co will soon begin consulting with stakeholders including regional communities to shape what speeds will be offered and wholesale pricing options.
Existing NBN satellite customers might be offered equipment and professional installation at no cost.
The Amazon partnership would be funded by NBN Co and won't require any taxpayer funds, Ms Sweeney said.
Communications Minister Anika Wells said regional communities would be consulted closely on the transition.
"Being more connected means Australians living anywhere will be better off, whether that is working from home, managing a regional business, accessing telehealth, video conferencing or online learning," she said.
Kuiper has launched 78 satellites since it kicked off in April, but is set to ramp things up with its initial 'constellation' to feature 3200.
Bush advocates, including Better Internet for Rural, Regional and Remote Australia, said it was a major step in the right direction.
"For people in the bush, connectivity isn't just convenient, it's critical," BIRRA head Kristy Sparrow said.
"Choosing to live in regional Australia should never mean being excluded from accessing reliable and affordable telecommunications ... the deal introduces real consumer choice and brings much-needed competition and affordability."
Starlink's satellite service has become increasingly popular in parts of regional Australia, where internet is provided through the slower copper network instead of fibre.
But a regional telecommunications review released in December found the foreign ownership of systems such as Starlink raised questions about data security and sovereign risks.
It prompted a $3 billion boost to complete NBN service upgrades to about 620,000 homes and businesses.
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