The Morrison government appears to have rescued its religious discrimination bill from disaster with major religious groups declaring they are pleased with revisions made in a second draft that will go to Parliament early next year.

The new bill offers extra concessions to religious charities, expanded powers for religious bodies to hire and fire staff and tighter rules around how courts can adjudicate questions of religion - all of which appeal to churches that had criticised the earlier bill.

Major churches have warmed to the government's revised religious discrimination bill after initial doubts. Credit:The Age

Last month, several religious bodies signed a letter to Prime Minister Scott Morrison saying they preferred no action to the "flawed" bill on the table at that point. The coalition included the Catholic Archdiocese of Sydney, the Anglican Diocese of Sydney, the Executive Council of Australian Jewry, the Australian National Imams Council and the Greek Orthodox Church.

It prompted Mr Morrison to delay the bill to next year and undertake further consultations.