Prime Minister John Howard has decided to take immediate steps to make possible an expanded nuclear industry in Australia, which could ultimately include nuclear power stations, uranium enrichment and nuclear waste treatment.
The move is being seen by some as an attempt to take the political initiative on climate change away from Labor as it prepares to debate its new uranium mining and nuclear policy.
According to The Weekend Australian, Mr Howard will promote uranium exports and "climate-friendly" nuclear power as part of a political campaign to cast himself as forward-looking and Labor as being against progress and jobs.
Ministers and departments will be instructed to take immediate action on a four-stage plan to prepare Australia for a nuclear future and report back to the Prime Minister by the end of this year, the newspaper reports.
At the Victorian state Liberal conference in Melbourne on Saturday, Mr Howard will confront the opposition with a huge challenge on Australia's energy security, uranium exports and global warming.
He will argue that "to be serious" about not damaging the Australian economy while still taking serious steps to cut greenhouse gas emissions, the nuclear option cannot be ruled out".