Key senator Nick Xenophon is understood to have extracted $60 million in funding for training journalists and to help small and regional publishers hire cadet reporters in return for backing the Turnbull government's media reforms.

Last minute negotiations on Wednesday morning between Senator Xenophon and Communications Minister Mitch Fifield has seen the government bump up its offer to win over the South Australian powerbroker.

As reported by The Australian Financial Review on Wednesday, Senator Xenophon had been close to a deal but was haggling with the government after it initially offered just $36 million.

Crossbench senator Nick Xenophon appears to have secured $60 million for journalism training and employment Andrew Meares

While details of the deal are yet to be announced, the Financial Review understands $60.4 million will be made available over three years for training journalists and helping eligible news outlets buy new equipment.

Under the agreement, 30 scholarships worth up to $40,000 will be provided a year for two years to students to study journalism at universities or journalism colleges, with an emphasis on the regions, from 2018-19.