Virgin Australia's board is set to throw in the towel after repeated efforts to secure a financial lifeline from the Commonwealth government.

It is understood Virgin Australia's board will meet on Monday night to decide the company's future.

Virgin CEO Paul Scurrah's valiant quest to save the airline has fallen on deaf ears in Canberra. Peter Braig

Sources said it was near impossible for the board to do anything but hand the company over to the administrators, having failed to get any help from Canberra despite numerous letters requesting additional support.

It is understood the government told Virgin on Monday it would not hand it any further assistance, effectively sealing the company's fate.

Without government assistance, Virgin is highly unlikely to be able to attract new investors to help recapitalise the company or get its lenders to write of loans as would be required.