Red Flag Nellis takes place across more than 12,000 square miles of airspace and 2.9 million acres of land, including both desert and mountains.
It comes despite new Defence Minister Richard Marles raising doubts about the deal last year and stating it would be subject to a review process.
The news will enhance support for the beleaguered aircraft after Labor last year highlighted its inability to land on battlefields as an example of mismanagement of Defence projects.
The former US marine pilot at the centre of claims military aviators had been training the Chinese has been unfairly singled out for political gain, argued his lawyer on Tuesday.
As part of the agreement, signed off by the US, the country will also procure a tailored sustainment solution, information technology and software support, as well as a training program.
The mission was in support of an initiative that sees the Australian government work with more than 150 research institutions globally to study the region.