Attorney-General Michelle Rowland confirmed the government will on Tuesday introduce the draft laws to the lower house after "constructive engagement," indicating a deal had been struck after politicians held late night meetings.
Sussan Ley is expected to announce the coalition's position later this morning, with the proposal heading to the party room.
"I don't want to pre-empt any of those conversations, and particularly since they have been undertaken in good faith," Ms Rowland told ABC Radio.
"I will point out that the removal of the serious vilification provisions do mean that these remaining provisions in the prohibited hate groups section do need to do a lot of work."
Changes include cracking down on groups that voice hate against people of other faiths, bringing in stronger background checks for firearm owners, and setting up a national gun buyback scheme.
Prime Minister Anthony Albanese has previously said he wants the reforms to pass on the same day, and that he would walk away from reforms this term of parliament if they failed to garner support.
Labor originally planned to introduce the gun and hate speech reforms in a single package, but was forced to split the bill due to fierce opposition to proposed racial vilification laws from the coalition and the Greens.
After the prime minister and Ms Ley discussed the reforms on Monday morning, Liberal MPs met in the evening to formalise their position ahead of a joint partyroom meeting with their coalition partner the Nationals on Tuesday.
Liberal sources told AAP on Monday night their party had put forward a series of technical amendments which had been accepted by Labor.
But opposition education spokesman Julian Leeser, who is Jewish, wouldn't confirm what details had been decided on.
"We want to see extremist organisations busted up. We want to see people brought to justice," he said.
"That's what we want to see. We want to see powers given to authorities to deal with those issues."
Nationals MPs still have concerns about the impact the reforms could have on free speech, with Queensland senator Matt Canavan raising issues with the framework for hate group listing, arguing its too broad.
Senator Canavan said he could not support the bill drafted in its current form.
"Giving a power to a government to ban an entire group is an extremely serious change to our laws," he told ABC Radio.
The bill tightens the definition of a preacher or religious leader, introducing mandatory two-year reviews of the legislation and requiring consultation with the opposition leader when listing an extremist organisation.
The Greens have said they will not back the hate speech legislation due to the effect it could have on political commentary including protests, leaving the coalition as the only viable partner to pass the bill through the Senate.
While provisions making it illegal to vilify someone based on their race have been dropped, the watered-down legislation would still allow the government to effectively outlaw groups that promote hatred, likely including neo-Nazi organisation the National Socialist Network and radical Islamist collective Hizb ut-Tahrir.
The proposed laws would also allow the government to refuse or revoke the visas of people who hold extremist views.
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