The Newshub media organisation says the "three strikes" law will be repealed in two weeks.
Referring to a "dossier of documents" it has obtained, Newshub says Justice Minister Andrew Little will also push for sentences shorter than two years to be served as home detention.
"The Government is preparing to soften bail, sentencing and parole laws, and Newshub can reveal it's already discussing how to reassure the public in the event of a high-profile crime," the report says.
Newshub says the Government documents also highlight the extent of the prison overcrowding crisis, saying if big improvements aren't made in a year, there will be "a failure of the prison system".
The NZ Herald website reports that Mr Little will take a proposal to repeal the "three strikes" law to Cabinet when it meets in 10 days.
It says Mr Little has said the existing option of home detention for sentences of under two years in prison is being used less by judges.
"The proposal that's going before Cabinet is to give a bit of a statutory signal that we want more promotion of that as an alternative to prison."
The report also says the measures Mr Little is proposing include restoring the former Sentencing Council "to provide consistency in sentencing across the country".