Native logging in Victorian forests will grind to a halt at the end of the year, more than half a decade earlier than planned.
AAP understands the Victorian government will announce the early closure in Tuesday's budget.
The state government had planned to phase out native logging in 2030.
Logging activity had been hamstrung in recent months following legal action against state-owned forestry company VicForests for failing to protect endangered possums.
The Victorian timber industry employs about 15,000 people and accounts for about a quarter of Australia's log harvest volume.
AAP has contacted the CFMMEU, VicForests and the Australian Forest Products Association for comment.