Nicole Kidman has revealed her new film 'Australia' is the movie she "dreamed of making" since she was a child.

The Oscar winning actress is extremely proud to be a part of the romantic epic directed by 'Moulin Rouge' creator Baz Luhrmann and co-starring Hugh Jackman.

Nicole, 40, said: "It's just extraordinary in epic-ness. This is the kind of film that I dreamt of making as a little girl.

"For 'Moulin Rouge' we did everything in the studio but for this we've been on location the entire time - in Darwin, up in Queensland and then camping out in tents in the middle of the desert."

'The Golden Compass' star also admitted one of the best things about working on fellow Australian, Luhrmann's World War II romantic epic was filming without a green screen - the industry term for working with computer generated images.

She said: "Green screen is definitely not my favourite thing. I became an actor because I wanted to act with other actors. That's been the beauty of Baz's film - you are on location breathing the air, feeling the impact of the sunsets.

"With something like 'The Golden Compass' you really have to use your imagination, and it's a different challenge.

"But it's where movies are heading. 'Australia' is the last of a dying breed and this is part of the new wave."