Australia suffered its first combat death this year in war-torn Afghanistan as the Defence Department confirmed on Tuesday the demise of a veteran Digger, who was serving his seventh tour in the 10-year conflict.

In a news briefing held in Darwin, General David Hurley, chief of the Defence Force, disclosed that a 40-year-old service member was killed Monday morning (local time) while conducting operations in Uruzgan's Chora Valley.

The incident represented the 33rd death of an Aussie soldier since the United States and NATO deployed troops in Afghanistan to clamp down on al Qaeda and other terrorist group's operation from the country.

Gen. Hurley said the Digger was part of the Special Air Service (SAS) team which came under fire while a helicopter was trying to insert the team members into the combat zone.

All unit members, Gen Hurley assured, were wearing protective body armour but a bullet was able to pierce through the chest of the SAS member, leading to his death while a medical team was evacuating him to Australia's base in Tarin Kot.

The general also told reporters that the soldier will remain unidentified as per the request of his family, who have been notified immediately following the incident.

The Digger, Gen Hurley said, has been in the service since 1990 and was described by his colleagues as "a soldier's soldier."

"His colleagues describe him as a highly professional operator who earned great respect within the special operations community over many years of service," the general was reported by ABC as saying on Tuesday.

The Chief also noted that it was unusual for the SAS member to be serving on extended length of tours but assured that the matter was being dealt with and "I'm confident that the management processes are in place in terms of the psychological management of members of the SAS.

Prime Minister Julia Gillard attended the new conference and admitted that "while this is a blow for all of us, it will be felt most deeply by this soldier's family and friends."

Ms Gillard also anticipated that the Digger's death would again prompt questions on why Aussie soldiers were being deployed in Afghanistan but she reiterated that the country's involvement in the conflict would ensure "that Afghanistan would not continue to be a safe haven for terrorists."

"This tragic incident is part of what we are doing in Afghanistan because that mission is so important to our Australian nation," the Prime Minister was reported by The Daily Telegraph as saying.

The news of the soldier's death came as Australia prepares to pull out much of the 1500 troops stationed in Uruzgan by 2013, en route to a full withdrawal by the following year, which is the exact timeline being followed by U.S. forces.

And like the United States, Australia is likely to keep Special Forces units in the country beyond 2014 as Ms Gillard kept her options open on the possibility that Aussie commandos would work with U.S. forces in the region to effectively stamp out terror groups' operations.