The Australian understands legal changes to be proposed today by Environment Minister Tony Burke and Fisheries Minister Joe Ludwig would prevent the 142-meter vessel fishing Australian waters for at least two years.
The decision follows a caucus backlash over the government's decision to grant a license to the controversial vessel, formerly called the Margiris.
Labor MPs and senators were told of the decision this morning.
Senator Louise Pratt welcomed the decision via Twitter: “Pleased that Australia is giving the super trawler the boot out of Australian waters.”
Earlier, cabinet minister Craig Emerson said existing legislation had not contemplated vessels of the size of the controversial trawler, which critics have accused of being involved in overfishing in other parts of the world.