Outspoken Chinese Communist Party critic Andrew Hastie, who chairs the intelligence and security committee, will head the inquiry.

Multicultural Affairs Minister Alan Tudge says foreign interference in Australia has reached levels not seen since World War II.

"We've been taking action step after step in relation to dealing with foreign interference and this is the most recent one," he told Sky News on Monday.

"I'm sure it (the committee) will get to the bottom of it and provide some good recommendations to the government."

Independent MP Bob Katter was planning to introduce a private member's motion calling for such an inquiry.

Nationals backbencher Barnaby Joyce was prepared to cross the floor to support the vote.

Later this week, the federal government will introduce legislation making it easier to torpedo deals between public universities and foreign countries, which could be considered against the national interest.

Universities are concerned about what the proposed powers could mean for research collaborations with international peers.

Australian Associated Press