Proposals to cut the migrant salary threshold from £30,000 to £25,600 are expected to be approved at a Cabinet meeting on Friday.
The Independent reported Prime Minister Boris Johnson and Home Secretary Priti Patel had accepted the proposals that were made by the Migration Advisory Committee last month.
Social care leaders have argued the proposals do not go far enough, however, and called for a much deeper cut to the threshold to enable care workers to be recruited from abroad.
The threshold change is expected to be adopted along with an Australian-style points based system that prioritises skilled workers.
Reports suggest points accrued will be tradeable with applicants falling short in one area able to compensate for a higher score in another.
The reports added that people with a job offer of £23,000 or more could be granted entry by gaining points in another area such as language skills.
The new system is expected to take effect from 1 January 2021 when unskilled EU migrants will lose their right to live and work in the UK.
It is believed that the Government may also adopt short-term visas next year to combat shortages for low-skilled workers in sectors such as care.
A Home Office spokesperson said: “We will deliver on the people’s priorities by introducing a points-based immigration system from 2021 to attract the brightest and best talent from around the world, while reducing low-skilled migration and bringing overall numbers down.
“We would like to thank the Migration Advisory Committee for their report which we will carefully consider before setting out further detail on the UK’s future immigration system.”