Australia is under an "unprecedented" threat of foreign espionage and interference, one of the country's most senior intelligence chiefs said in a rare speech, citing the case of a "sleeper agent" who spent years building business links.

Australian Security Intelligence Organization Director-General Mike Burgess said several nations were working hard to influence lawmakers, government officials, media figures, business leaders and academics.

"The level of threat we face from foreign espionage and interference activities is currently unprecedented," Burgess said at ASIO headquarters in Canberra on Monday evening as he unveiled the agency's annual threat assessment.