Under the proposed visa deal, young Australians would be able to spend their gap year working in the US and their American counterparts could do the same in Australia before returning home for university, Fairfax newspapers report.

The announcement was expected to emerge from talks between US President George W Bush and Prime Minister John Howard before the Asia-Pacific Economic Co-operation (APEC) meeting in Sydney next month.

The Australian Tourism Export Council managing director Matthew Hingerty said the organisation has been working on the deal with the Australian Department of Immigration and the US government for about two years.

"Negotiations have been slow but they have been progressing in the right direction, obviously APEC is a good opportunity for an announcement to happen," Mr Hingerty said.

He had not received confirmation that the deal would go ahead but said he was hopeful after the media reports on Saturday.

"If it's true, it's a real breakthrough for the Australian tourism industry," Mr Hingerty said.

"The backpacker industry is very important to the Australian economy as it provides a lot of extra income for rural and regional Australia and you know they're a very important part of our workforce.

"We find that backpackers when they come to Australia, they go back being unofficial ambassadors for our country.

"Many go on to have careers in government and in business and they become friends to Australia and vice versa and further cement the bonds between Australia in the US into the future."

--aap

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