The Abbott government is set to scrap the ABC’s Australia Network international broadcasting service in next Tuesday’s budget.

Cabinet approved the decision in a meeting on Wednesday, according to a report in The West Australian. The ABC has a 10-year, $223 million contract to run the network, which broadcasts to 44 countries in the Asia Pacific.

The ABC's Australia Network is facing the axe. Credit:Peter Braig

The ABC, which is finalising new partnership deals with Chinese and Indonesian broadcasters, has been lobbying publicly and privately for the government to continue to fund the service.

The ABC is required under its charter to transmit news and other programs to overseas countries to encourage awareness of Australia and enable Australians living overseas to stay abreast of national affairs.