Is Johnny Depp heading Downunder for Pirates 5?

Johnny Depp stars in the 'Pirates Of The Caribbean' movies.

Johnny Depp could be sailing to Australia aboard Pirates of the Caribbean 5.

Australia's federal government has given Disney treasure to lure them there in the form of $US20.2 million (NZ$24.6 million) of financial incentives.

The tax break was originally intended for fellow Disney flick 20,000 Leagues Under The Sea, but that movie was shelved after director David Fincher jumped ship.

Disney asked the Australian government to reallocate the incentives to Pirates 5 and increase them to 30 per cent of the adventure movie's budget - thought to be more than $200 million, according to The Hollywood Reporter.

A spokesperson for Arts Minister George Brandis confirmed the funding shift.

"The government is pleased to agree to Disney's request to enable earlier funding to be re-purposed for the production of Pirates of the Caribbean 5," the spokesperson said in a statement.

While the offer is an increase it's still not enough money for Disney, although it's believed the studio could reach its target by approaching state governments for funding.

The studio is still not obligated to shoot Down Under, with Variety reporting they're considering Mexico - where Titanic was filmed in giant water tanks - as an alternative.

If Pirates 5 does set sail in Australia, Fairfax and The Queensland Times are both reporting that Village Roadshow Studios on the Gold Coast would likely be used for filming, as well as locations in far north Queensland.

Pirates 5 is expected to begin production early next year, ahead of a 2017 release.

- AAP