The federal government is considering cutting the migration rate while increasing the proportion of skilled migrants.

9News understands a review of the immigration cap will soon get under way.

The expected cut could be as high as 30,000. The cap currently sits at 190,000 a year.

The federal government is considering cutting the migration rate while increasing the proportion of skilled migrants. (9News)

The government is looking at also increasing the proportion of highly-skilled migrants accepted in the intake.

Under the altered program, only the "best and the brightest" – those who would actively contribute to the economy – would be accepted.

The changes are expected to be announced as early as December, however they would not take effect until July next year.

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The expected cut could be as high as 30,000. The cap currently sits at 190,000 a year. (9News)

The news follows suggestions migrants should be forced to spend five years in Australia's economically struggling regional area, in exchange for permanent residency.

Mr Morrison suggested implementing new conditions on non-permanent visas could ensure the success of such a scheme.

"If you want permanent residency in this country and you're on a non-permanent visa, and you haven't been compliant with the terms of your non-permanent visa, you don't get a permanent residency visa and you go home," he said.

Home Affairs Minister Peter Dutton said the government was also considering additional ways of incentivising having migrants live in regional areas.

9News understands a review of the immigration cap will soon get under way. (9News)

"There are some regional towns, here in Queensland for example, where the abattoir doesn't remain open without that migrant workforce," he said.

The last time the immigration intake was reduced was 2010.