A federal corruption watchdog would have all the coercive powers of a royal commission and be able to investigate anyone involved in public administration, not just politicians, under designs drawn up by some of Australia's most respected retired judges.

Under the plan, the watchdog would be a fully independent statutory body designed to "prevent, investigate and expose corruption", with three commissioners appointed based on the recommendations of a bipartisan parliamentary committee.

Former Supreme Court judge Anthony Whealy wants a federal corruption watchdog.

The watchdog would have guaranteed funding, strong investigative powers, the ability to hold public hearings and to make findings of fact, which would then be referred to a new well-resourced and specialised unit within the Director of Public Prosecutions for charges.