General Peter Cosgrove is set to become the next Governor-General of Australia, it's been reported, with a formal announcement tipped for late next month.

The decision to give the vice regal position to the popular former chief of the defence force has been taken but not finalised, News Corps Australia reported.

News Corps said it was understood Cosgrove has been preparing to step back from a busy public and business life to replace Governor-General Quentin Bryce and serve a five-year term from March.

News Corps said Prime Minister Tony Abbott's office refused to comment on whether the offer had been made to Cosgrove but a spokesman said "the appointment will be announced in due course".


Acting Prime Minister Warren Truss said Cosgrove would be a great candidate, but there are other suitable candidates, too.