SYDNEY (AFP) - United States General David Petraeus has been awarded Australia's highest honour for his service to coalition forces in Iraq, the military said Wednesday.

The Australian Defence Force said Petraeus was made an honorary officer of the Order of Australia for his role as commanding general of the multi-nation force in Iraq from 26 January 2007 to 30 October 2008.

Defence forces chief Angus Houston said during his time in Iraq, Petraeus had led coalition forces, including Australian soldiers, in an "exceedingly complex operational environment to great effect."

"Under General Petraeus' guidance the coalition gained tactical momentum by conducting successful counter-insurgency and offensive operations to clear and hold significant areas of Iraq," Air Chief Marshal Houston said.

"This directly led to strengthened reconciliation efforts and a renewed focus on political reform, subsequently resulting in a reduction in violence, lessening of casualties and a decrease in security incidents."

Houston said Petraeus' "stoic determination, impeccable integrity and realist command approach" were instrumental in producing a safer environment for Australian forces in Iraq.

"This award is the highest honour in our system and I can think of no one more deserving of this recognition than General Petraeus," he said in a statement.

Petraeus is commander of United States Central Command which controls US forces in Iraq and Afghanistan.