The deal would allow Singaporeans and Australians who had been vaccinated to travel between the countries without quarantining.
Prime Minister Lee Hsien Loong said he hoped Singapore would start reopening its borders by the end of the year.
Australia is “working with Singapore” to create a travel bubble between the two nations as early as July, officials said on Sunday, in an effort to restart tourism and travel put on hold by Covid-19.
“As the vaccine rolls out, not only in Australia but in other countries, we will reopen more bubbles,” he told public broadcaster ABC.
The newspaper said Canberra is also hoping that people from third countries – such as international students, business travellers and returning citizens – could complete two weeks’ quarantine in Singapore before flying to Australia.
But Singapore, which has already opened its border to a handful of countries that have controlled the virus, including Australia, said it was “not in discussion on the concept of a quarantine centre or vaccination hub”.