Australia's Immigration Minister Peter Dutton is reportedly scrapping a former Labor government's deal that allowed major fast food outlets to import staff on 457 visas.

News Corp reported McDonalds, Hungry Jack's and KFC will be barred from sponsoring foreign workers on 457 visas in Australia, which are intended to fill temporary skill shortages.

The workers will be forced to leave Australia once their agreements run out unless the restaurant is able to present an individual case as to why they should remain in the country.

It is the first time an entire sector has been banned from using the visas.