An Australian soldier has been found dead from gunshot wounds in his barracks area in East Timor, the Australian Defence Force announced today.

Defence Force Chief Angus Houston said the circumstances of the death were uncertain and there would be a formal investigation.

"Any death of an ADF member is a tragic and sad loss for the entire defence community," Air Marshal Houston said.

"The soldier's next of kin have been informed and our priority is to ensure the family is receiving the support and care they need."

The defence chief said the body of the dead man, whose name has not been released, was found yesterday afternoon in the capital of East Timor, Dili, where Australian troops help maintain order amid sectarian strife.

AAP reports: The soldier was part of the International Stabilisation Force in East Timor.

About 850 ADF members are deployed in East Timor as part of the ISF, according to the defence website.

Air Marshal Houston said arrangements for the soldier's repatriation were being considered.

The soldier is the third Australian serviceman to die on active service in recent weeks.

On October 8, Trooper David Pearce was killed by a roadside bomb in Afghanistan, while late last month Special Air Service Regiment Sergeant Matthew Locke was shot dead by the Taliban, also in Afghanistan.