The Lucas Heights nuclear reactor is set to become a world leader in the production of nuclear medicine.

The ABC reported on Saturday night the reactor, which already produces nuclear medicine, would expand its production to produce more than 25 per cent of the world's nuclear medicine needs.

Stored drums of low-level radioactive waste at Lucas Heights in Sydney. Credit:Peter Rae

A new production plant is under construction which the Australian Nuclear Science and Technology Organisation (ANTSO) believes will allow the plant to produce 13 million nuclear medicine doses a year.

ANSTO Nuclear Medicine chairman Doug Cubbin told the ABC Lucas Heights was looking to take over from ageing international reactors that no longer had the capacity to keep up with demand.