The ABC and SBS are facing swingeing cuts of up to $200 to $300 million over five years in the mid-year budget update, as the federal government prepares to announce the second round of savings it will demand of the broadcasters.

Sources from the broadcasters and government confirmed to Fairfax Media on Tuesday the magnitude of the cuts expected.

Malcolm Turnbull has the ABC and SBS in his sights for funding cuts. Credit:Rob Gunstone

It's understood the government will make the case for the cuts in the context of the two broadcasters being slated to receive an overall $6.9-billion, five-year funding allocation.

Communications Minister Malcolm Turnbull said on Tuesday that the magnitude of the cut had been finalised, but he would not confirm if it had been approved by the cabinet, and said "we'll be making some announcements about all of that before too long but I won't pre-empt it today".