diff --git a/lib/ansible/modules/cloud/azure/azure_rm_availabilityset.py b/lib/ansible/modules/cloud/azure/azure_rm_availabilityset.py
new file mode 100644
index 0000000000..4e30b3d69f
--- /dev/null
+++ b/lib/ansible/modules/cloud/azure/azure_rm_availabilityset.py
@@ -0,0 +1,274 @@
+#!/usr/bin/python
+#
+# Copyright (c) 2017 Julien Stroheker, <juliens@microsoft.com>
+#
+# GNU General Public License v3.0+ (see COPYING or https://www.gnu.org/licenses/gpl-3.0.txt)
+
+from __future__ import absolute_import, division, print_function
+__metaclass__ = type
+
+ANSIBLE_METADATA = {'metadata_version': '1.1',
+                    'status': ['preview'],
+                    'supported_by': 'community'}
+
+
+DOCUMENTATION = '''
+---
+module: azure_rm_availabilityset
+
+version_added: "2.4"
+
+short_description: Manage Azure availability set.
+
+description:
+    - Create, update and delete Azure availability set. An availability set cannot be updated, you will have to
+      recreate one instead. The only update operation will be for the tags.
+
+options:
+    resource_group:
+        description:
+            - Name of a resource group where the availability set exists or will be created.
+        required: true
+    name:
+        description:
+            - Name of the availability set.
+        required: true
+    state:
+        description:
+            - Assert the state of the availability set. Use 'present' to create or update a availability set and
+              'absent' to delete a availability set.
+        default: present
+        choices:
+            - absent
+            - present
+        required: false
+    location:
+        description:
+            - Valid azure location. Defaults to location of the resource group.
+        default: resource_group location
+        required: false
+    platform_update_domain_count:
+        description:
+            - Update domains indicate groups of virtual machines and underlying physical hardware that can be rebooted at the same time. Default is 5.
+        default: 5
+        required: false
+    platform_fault_domain_count:
+        description:
+            - Fault domains define the group of virtual machines that share a common power source and network switch. Should be between 1 and 3. Default is 3
+        default: 3
+        required: false
+    sku:
+        description:
+            - Define if the availability set supports managed disks.
+        default: Classic
+        choices:
+            - Classic
+            - Aligned
+        required: false
+extends_documentation_fragment:
+    - azure
+    - azure_tags
+
+author:
+    - "Julien Stroheker (@ju_stroh)"
+'''
+
+EXAMPLES = '''
+    - name: Create an availability set with default options
+      azure_rm_availabilityset:
+        name: myavailabilityset
+        location: eastus
+        resource_group: Testing
+
+    - name: Create an availability set with advanced options
+      azure_rm_availabilityset:
+        name: myavailabilityset
+        location: eastus
+        resource_group: Testing
+        platform_update_domain_count: 5
+        platform_fault_domain_count: 3
+        sku: Aligned
+
+    - name: Delete an availability set
+      azure_rm_availabilityset:
+        name: myavailabilityset
+        location: eastus
+        resource_group: Testing
+        state: absent
+'''
+
+RETURN = '''
+state:
+    description: Current state of the avaibility set
+    returned: always
+    type: dict
+changed:
+    description: Whether or not the resource has changed
+    returned: always
+    type: bool
+'''
+
+from ansible.module_utils.azure_rm_common import AzureRMModuleBase
+
+try:
+    from msrestazure.azure_exceptions import CloudError
+    from azure.mgmt.compute.models import (
+        AvailabilitySet, Sku
+    )
+except ImportError:
+    # This is handled in azure_rm_common
+    pass
+
+
+def availability_set_to_dict(avaset):
+    return dict(
+        id=avaset.id,
+        name=avaset.name,
+        location=avaset.location,
+        platform_update_domain_count=avaset.platform_update_domain_count,
+        platform_fault_domain_count=avaset.platform_fault_domain_count,
+        tags=avaset.tags,
+        sku=avaset.sku.name
+    )
+
+
+class AzureRMAvailabilitySet(AzureRMModuleBase):
+    """Configuration class for an Azure RM availability set resource"""
+
+    def __init__(self):
+        self.module_arg_spec = dict(
+            resource_group=dict(
+                type='str',
+                required=True
+            ),
+            name=dict(
+                type='str',
+                required=True
+            ),
+            state=dict(
+                type='str',
+                required=False,
+                default='present',
+                choices=['present', 'absent']
+            ),
+            location=dict(
+                type='str',
+                required=False
+            ),
+            platform_update_domain_count=dict(
+                type='int',
+                default=5,
+                required=False
+            ),
+            platform_fault_domain_count=dict(
+                type='int',
+                default=3,
+                required=False
+            ),
+            sku=dict(
+                type='str',
+                default='Classic',
+                required=False,
+                choices=['Classic', 'Aligned']
+            )
+        )
+
+        self.resource_group = None
+        self.name = None
+        self.location = None
+        self.tags = None
+        self.platform_update_domain_count = None
+        self.platform_fault_domain_count = None
+        self.sku = None
+
+        self.results = dict(changed=False, state=dict())
+
+        super(AzureRMAvailabilitySet, self).__init__(derived_arg_spec=self.module_arg_spec,
+                                                     supports_check_mode=True,
+                                                     supports_tags=True)
+
+    def exec_module(self, **kwargs):
+        """Main module execution method"""
+
+        for key in list(self.module_arg_spec.keys()) + ['tags']:
+            setattr(self, key, kwargs[key])
+
+        results = dict()
+        resource_group = None
+        response = None
+
+        try:
+            resource_group = self.get_resource_group(self.resource_group)
+        except CloudError:
+            self.fail('resource group {} not found'.format(self.resource_group))
+        if not self.location:
+            self.location = resource_group.location
+
+        # Check if the AS already present in the RG
+        if self.state == 'present':
+            response = self.get_availabilityset()
+            if not response:
+                self.results['state'] = self.create_availabilityset()
+                self.results['changed'] = True
+            else:
+                self.log("AS already there, updating Tags")
+                update_tags, response['tags'] = self.update_tags(response['tags'])
+                if update_tags:
+                    self.results['state'] = self.create_availabilityset()
+                    self.results['changed'] = True
+        elif self.state == 'absent':
+            self.delete_availabilityset()
+            self.results['changed'] = True
+
+        return self.results
+
+    def create_availabilityset(self):
+        self.log("Creating availabilityset {0}".format(self.name))
+        try:
+            paramsSku = Sku(
+                name=self.sku
+            )
+            params = AvailabilitySet(
+                location=self.location,
+                tags=self.tags,
+                platform_update_domain_count=self.platform_update_domain_count,
+                platform_fault_domain_count=self.platform_fault_domain_count,
+                sku=paramsSku
+            )
+            response = self.compute_client.availability_sets.create_or_update(self.resource_group, self.name, params)
+        except CloudError as e:
+            self.log('Error attempting to create the availability set.')
+            self.fail("Error creating the availability set: {0}".format(str(e)))
+
+        return availability_set_to_dict(response)
+
+    def delete_availabilityset(self):
+        self.log("Deleting availabilityset {0}".format(self.name))
+        try:
+            response = self.compute_client.availability_sets.delete(self.resource_group, self.name)
+        except CloudError as e:
+            self.log('Error attempting to delete the availability set.')
+            self.fail("Error deleting the availability set: {0}".format(str(e)))
+
+        return True
+
+    def get_availabilityset(self):
+        self.log("Checking if the availabilityset {0} is present".format(self.name))
+        found = False
+        try:
+            response = self.compute_client.availability_sets.get(self.resource_group, self.name)
+            found = True
+        except CloudError as e:
+            self.log('Did not find the Availability set.')
+        if found is True:
+            return availability_set_to_dict(response)
+        else:
+            return False
+
+
+def main():
+    """Main execution"""
+    AzureRMAvailabilitySet()
+
+if __name__ == '__main__':
+    main()
diff --git a/test/integration/targets/azure_rm_availabilityset/aliases b/test/integration/targets/azure_rm_availabilityset/aliases
new file mode 100644
index 0000000000..d6ff84111c
--- /dev/null
+++ b/test/integration/targets/azure_rm_availabilityset/aliases
@@ -0,0 +1,3 @@
+cloud/azure
+posix/ci/cloud/azure
+destructive
diff --git a/test/integration/targets/azure_rm_availabilityset/meta/main.yml b/test/integration/targets/azure_rm_availabilityset/meta/main.yml
new file mode 100644
index 0000000000..95e1952f98
--- /dev/null
+++ b/test/integration/targets/azure_rm_availabilityset/meta/main.yml
@@ -0,0 +1,2 @@
+dependencies:
+  - setup_azure
diff --git a/test/integration/targets/azure_rm_availabilityset/tasks/main.yml b/test/integration/targets/azure_rm_availabilityset/tasks/main.yml
new file mode 100644
index 0000000000..d01aa487e6
--- /dev/null
+++ b/test/integration/targets/azure_rm_availabilityset/tasks/main.yml
@@ -0,0 +1,80 @@
+- name: Create an availability set with default options
+  azure_rm_availabilityset:
+    name: myavailabilityset1
+    resource_group: "{{ resource_group }}"
+    tags:
+      tag1: testtag
+  register: output
+
+- assert:
+    that: output.changed
+
+- name: Create an availability set with advanced options
+  azure_rm_availabilityset:
+    name: myavailabilityset2
+    resource_group: "{{ resource_group }}"
+    platform_update_domain_count: 5
+    platform_fault_domain_count: 2
+    sku: Aligned
+  register: output
+
+- assert:
+    that: output.changed
+
+- name: Attempt to modify availabilty set options (we don't support modify so no changes)
+  azure_rm_availabilityset:
+    name: myavailabilityset2
+    resource_group: "{{ resource_group }}"
+    platform_update_domain_count: 2
+    platform_fault_domain_count: 2
+    sku: Aligned
+  register: output
+
+- assert:
+    that: not output.changed
+
+- name: Modify availabilty set options to update tags
+  azure_rm_availabilityset:
+    name: myavailabilityset2
+    resource_group: "{{ resource_group }}"
+    platform_update_domain_count: 5
+    platform_fault_domain_count: 2
+    sku: Aligned
+    tags:
+      test: modified
+  register: output
+
+- assert:
+    that:
+      - "output.state.tags.test == 'modified'"
+
+- name: Create availability set with incorrect fault domain parameter
+  azure_rm_availabilityset:
+    name: myavailabilityset3
+    resource_group: "{{ resource_group }}"
+    platform_update_domain_count: 5
+    platform_fault_domain_count: 4
+    sku: Aligned
+  register: output
+  ignore_errors: yes
+
+- assert:
+    { that: "'The specified fault domain count 4 must fall in the range 1 to' in output['msg']" }
+
+- name: Delete an availability set
+  azure_rm_availabilityset:
+    name: myavailabilityset1
+    resource_group: "{{ resource_group }}"
+    state: absent
+
+- name: Delete an availability set
+  azure_rm_availabilityset:
+    name: myavailabilityset2
+    resource_group: "{{ resource_group }}"
+    state: absent
+
+- name: Delete an availability set
+  azure_rm_availabilityset:
+    name: myavailabilityset3
+    resource_group: "{{ resource_group }}"
+    state: absent