NSW Premier Kristina Keneally and Health Minister Carmel Tebbutt are expected to announce on Wednesday the government's decision to end the trial and establish the service, The Sydney Morning Herald reports.
Legislation lifting the centre's trial status will also confirm it will remain the only injecting centre of its kind in NSW.
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The Medically Supervised Injecting Centre opened amid a storm of controversy in Kings Cross in May 2001, amid fears it would lead to an increase in crime and drug use in the area.
Up to the end of April this year, more than 3500 overdoses had been managed at centre without a fatality, the newspaper reports.

