Defence told the government it wanted Australia’s new submarines built in Adelaide, new documents reveal.

Ministerial advice given by the Defence department in December 2013 said the government-owned ship builder ASC was the only option for “assembly capability” although it might need assistance from other Australian companies, Fairfax reported on Monday.

The release of the advice under freedom of information laws comes after rumours Prime Minister Tony Abbott has promised the submarine contract to Japan.

According to the Fairfax report, the December 2013 advice to then defence minister David Johnston said the only options for Australia were to either produce an “evolved Collins” or to pursue a “new design”.

The advice concluded: “The strategy for Future Submarine construction is to renew the dormant capability resident in ASC Pty Ltd and its facilities as a start point. However, as ASC lacks some skills and capital to undertake this large task alone, additional skills and resources should be introduced, ideally from Australian companies to maximise sovereignty.”

The advice does suggest that Australia could work with the US, the UK or a European designer, but makes no mention of Japan either as a preferred builder or designer.

“A range of approaches offer differing levels of sovereign control. At one end of the spectrum is for Australia to lead the design and support by the US and UK and at the other end is for a mainland European designer to lead.”

Prime Minister Tony Abbott today dismissed the advice, saying it was based on previous Labor government policy.

When asked why he contradicted the advice, Abbott told reporters in Canberra on Monday the government wanted the best possible submarines at the lowest cost, while maximising the involvement of Australian industry.

“As we know, in six years, the former government did not place one single naval order with an Australian shipyard,” he said.

Opposition Leader Bill Shorten earlier said if the prime minister had a better plan than Defence for the next fleet he needed to come clean.

– with AAP