Canberra Tuesday welcomed as "very touching" the scrapping of a planned French wind farm on the site of a World War I battlefield where thousands of Australian soldiers died.

French energy company Engie Green had planned to erect turbines on the grounds of the former Bullecourt killing fields in northern France, where some 10,000 Australians were killed or wounded in 1917.

Many bodies were never found, and the planned site for the wind farm is a natural burial ground near the Bullecourt memorial that is visited regularly by Australian families.

"This is wonderful news for every Australian and especially those with a family connection to the Battle of Bullecourt," Veterans' Affairs Minister Dan Tehan said in a statement.

"The Engie group has listened to the concerns of the Australian people and they have acted with empathy by cancelling this project."