Turnbull government reportedly planning US-style Department of Homeland Security

Prime Minister Malcolm Turnbull is reportedly considering a proposal to create a US-style Department of Homeland Security.

Prime Minister Malcolm Turnbull Source: AAP

A federal cabinet minister has refused to speculate on whether Malcolm Turnbull is considering creating a US-style Department of Homeland Security.

There is a proposal to merge at least half a dozen relevant federal agencies from two departments into a mega-department, Fairfax Media reports on Tuesday.

Asked to detail the plans, Josh Frydenberg told ABC TV: "We're always looking to improve our level of co-ordination between agencies and between levels of government, but this report is speculation and I'm not going to comment".

Josh Frydenberg on US-style Department of Homeland Security