The Morrison government will deliver a multibillion-dollar stimulus package as coronavirus paralyses critical parts of the economy.

After a phone call overnight with the International Monetary Fund and warnings that Australia could be heading for a contraction, Treasurer Josh Frydenberg said the stimulus would be focused on cash flow, investment and jobs.

"It is going to have a 'b' in front of it that is for sure," said Mr Frydenberg. "The shock is very significant."

Treasurer Josh Frydenberg is preparing to announce a coronavirus stimulus package. Credit:Dominic Lorrimer

The service exports of tourism and education have been hammered by the flow-on effects of the virus. The sectors account for up to 5 per cent of economic growth and are expected to fall by 10 per cent.