As many as two million public sector workers are set to receive a pay rise of 2-3%, according to The Times.
The report suggests the Treasury will confirm the £2 billion pay increase on Monday as one of Theresa May's final acts before she resigns as prime minister.
Senior civil servants will receive a 2% rise, police officers will see their pay increase 2.5%, teachers and school staff 2.75%, and soldiers will have a 2.9% increase.
According to The Times, the increase is expected to come from existing budgets, meaning it is likely to result in cuts elsewhere.
It comes after nearly a decade of pay freezes for the public sector as a result of the government's austerity policy. It was frozen for two years in 2010, except for those earning under £21,000, and even then it was a below-inflation increase of 1%.