Scott Morrison and Boris Johnson have struck an Australia-Britain free trade deal.

Reports say the Prime Ministers of the UK and Australia are preparing to announce an in-principle agreement that may boost the Australian economy by up to $1.3 billion each year and offer exporters new options other than China.

One of the headline aspects of the deal is a provision for more Australians to live and work in Britain once international borders reopen.

The agreement must still be passed by parliaments on both sides, but is expected to take effect from mid-next year.

The deal with Australia is Britain’s first since it split from the European Union.

From the Australian side, as well as a revamp of visa requirements to make it easier for professionals and young travellers to live and work in Britain, the agreement will also mean many professional qualifications gained in one country will be recognised in the other.

The two leaders also appear to have settled on a scheme to phase out tariffs and quotas over the course of several years.

The UK had asked for a 15-year transition period, Australia allegedly wants all restrictions to be immediately swept away.