Regional settlement plan for migrants

A mandatory regional settlement plan for new migrants could soon come before Prime Minister Scott Morrison's new cabinet.

Australia continues to battle a long-standing shortage of skilled workers. Source: AAP

New migrants would be forced to settle in regional areas for up to five years under a federal plan to ease congestion in Melbourne and Sydney.

A decision on the time period for mandatory settlement was due to go to the Turnbull cabinet last week, but the leadership spill put that discussion on hold, The Australian reported on Wednesday.

The proposal has yet to be put to Scott Morrison's new cabinet, and the prime minister's office would not comment on the development of the policy.