A new "national interest test" to apply to academic research grants will give ministers the power to block funding for projects that do not align with Australia's security, foreign policy and strategic interests.

Fairfax Media understands the test announced by federal Education Minister Dan Tehan last week has been designed with one eye squarely on China and its growing influence at Australia's major research universities.

Education Minister Dan Tehan will introduce a national interest test for research grants. Credit:Alex Ellinghausen

A report by the Australian Strategic Policy Institute released last week pointed to the booming collaboration between Australian universities and Chinese military scientists.

In particular, it identified the University of NSW as second only to a Singaporean institution for publications with academics linked to the People's Liberation Army over the past decade.