Former Labour Party cabinet minister and deputy leader, Annette King, is expected to take up the position of Australian High Commissioner later this year.
Chris Seed, who has been in the job since November 2013, is due to return to New Zealand by the end of the year.
RNZ understands Dame Annette, who has family in Sydney, will then take up the Canberra position.
She left Parliament in 2017 after 33 years, and was made a dame in this year's New Year's Honours.