Australia's military will be given far-reaching powers, including the ability to take control of terror incidents on home soil, under a national security overhaul.
The Turnbull government is set to announce the sweeping terror law changes on Monday, both Fairfax and News Corp report.
Under the changes, the army could block streets and kill terror suspects.
Certain state police teams would get specialist SAS training and could even have military personnel embedded to improve communications between the agencies.
The move is in response to Sydney's 2014 deadly Lindt Cafe siege.
Prime Minister Malcolm Turnbull is scheduled to hold a press conference at Holsworthy Barracks in Sydney's southwest on Monday morning.