Defence Minister Marise Payne is reportedly expected to announce Australia will wind back its operations in the fight against Islamic State in Iraq and Syria.
Senator Payne is due to address the media later on Friday morning.
Earlier this month Iraq's prime minister declared victory over the terrorist group.
Labor's former defence spokesman Stephen Conroy described the announcement as great news.
"I remember being in the room in the briefings when ISIS first starting rolling through all those towns in Iraq and there was enormous pessimism that Iraq would never come together," he told Sky News.
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"The troops over there have done a fantastic job and this is a real tribute to their professionalism."

