- READ MORE: Support grows for new Asian investment bank
Australia could announce its conditional involvement in a new China-led bank as early as Wednesday.
The Asian Infrastructure Investment Bank is being promoted by China as a way of financing regional development, but the US has reservations.
Britain, France, Germany and Italy have queued up to join this month, reportedly won over by China forgoing veto power over the bank's decisions.
They join 23 others including New Zealand, India and Singapore.
Federal cabinet considered Australia's role in the bank at a meeting in Canberra on Monday and Prime Minister Tony Abbott is understood to be consulting with foreign leaders in the lead-up to an announcement.
The US was originally against the idea, but has been warming to the proposal in recent months.
On Monday, the US Treasury Under Secretary for International Affairs Nathan Sheets signalled co-financing projects with existing institutions like the World Bank or the Asian Development Bank could make the new bank work.
Such co-financing, under the same standards as existing institutions, could provide an important boost to much-needed infrastructure in the region, he said.
Mr Abbott and Treasurer Joe Hockey say there is merit to the bank, but there must be transparency, no single country dominating it and Australian contractors should be able to tender for work.
Labor has urged the government to take part in the bank which had the potential to boost infrastructure investment by about $100 billion.
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