Biden plans to make the announcement later on Monday during a meeting with Sunak and Albanese at a US naval base in San Diego, the report said.
The announcement will mark the first concrete actions taken by the so-called AUKUS alliance, formed by the United States, United Kingdom and Australia in 2021 to boost their cooperation in the Indo-Pacific region.
The deal involves developing industrial production capacity for nuclear-powered submarines, as well as sharing technology and training between the three partner nations, the report said.
The partnership is the first time in more than six decades that the US has shared nuclear submarine technology. Currently, only six countries maintain nuclear submarines: the five permanent UN Security Council members and India.
Australia will make an initial purchase of three Virginia-class submarines, with an option to add two more, the report said. Delivery of the vessels would begin in 2032, the report said.
The AUKUS pact also includes enhanced cooperation on cyber, artificial intelligence and other military technology issues.