A whopping $1 billion-a-year Australian beef cattle live export deal with China is on the cards as the countries move closer to sealing a bilateral trade agreement.

One million head of cattle a year will be shipped to China for slaughter to help plug the country’s beef shortfall.

Australia and China are in the last stages of free trade negotiations.

“It’s a million cattle worth a billion dollars,” Coalition frontbencher Christopher Pyne told the Nine Network today. “The ink is not dry on the contract though.”

Previously, China barred Australian live beef cattle exports because of the presence of bluetongue virus in parts of northern Australia.

The Chinese authorities fear the virus could affect their sheep.

Under the deal, cattle from southern Australia will be shipped to China all year round but those from northern Australia will be restricted to several months when the disease is less common, The Australian reports.

However, the Australian Live Exporters Council is reluctant to crack open the champagne just yet.

Health protocols still had to be agreed, chief executive Alison Penfold said.

Livestock availability, shipping capacity and sufficient compliant supply chains in China are major factors affecting whether the big headline numbers would be achieved.

“The figure of a million head is a very optimistic one, I certainly don’t think we’ll see that in the foreseeable future,” she told ABC radio.