Costello set to chair Future Fund: report

Federal Cabinet is set to confirm former treasurer Peter Costello's appointment as chairman of the Future Fund, The Australian Financial Review reports.

According to the newspaper, outgoing chairman David Gonski has recommended Mr Costello, who has been acting in the role, as his replacement.

Mr Costello created the $90 billion sovereign wealth fund in 2006 to cover the federal government's unfunded public service superannuation liabilities.

The former treasurer was appointed to the fund's board in 2009 but the Gillard cabinet ignored the board's advice that he should be its chair, hoping to resolve board divisions by instead appointing a business outsider, the AFR reports.