Free childcare could be extended until the end of July

The federal government's free childcare scheme is expected to be extended.

9News understands the federal government is set to continue the initiative for up to another four weeks.

The program was due to end at the end of June, but 9News understands it will end sometime in July.

READ MORE: Government's free childcare scheme 'not sustainable' for many Aussie providers

There has been concern in the childcare industry, and in government that demand for childcare could fall once the system reverts back to parents paying, and that could put centres at risk of closing.

9News can also reveal the government is working on reducing the amount of hours parents work or volunteer for to qualify and benefit from a subsidy.

Continuing with  free childcare has been estimated to cost the federal government about $15 billion a year.

An announcement is due later this week.