Bangkok: Cambodia is set to permanently ban commercial surrogacy, ending hopes of Australian parents intending to enter into any arrangements with surrogate mothers in the impoverished country.

A draft law imposing the ban is likely to be passed by Cambodia's parliament early next year.

Surrogacy operators had been confident the government in Phnom Penh would allow commercial surrogacy under strict supervision, legalising what was a booming industry until it was shut down during a crackdown late last year.

But Phon Puthborey, a spokesman for the Women's Affair Ministry, told the Cambodia Daily the "main content of the law is that we absolutely ban commercial surrogacy and any actions that get benefit or profit from surrogacy [are] completely banned".