Up to now, Gillard always showed her opposition to pass the law to legalize gay marriage but more and more members of her party and Prime Minister of Tasmania supported on several occasions gay marriage and invited Gillard to pass the law.
According to government sources, she would announce within weeks a conscience vote on the issue stating her position ahead of the Labor Party's national conference in December.
However, she could also decide to do it during the meeting of the Commonwealth planned the next week in Perth.
Government sources said despite supporting a conscience vote, it wouldn't necessarily mean the PM would support gay marriage itself.
As reports Dailytelegraph, Labor MPs in favour of a free vote said that it made political sense for Ms Gillard to announce support for a conscience vote to take the heat of the debate at the conference.
"The PM can announce her position, she can do that by expressing her own views without them being binding," said a Labor source.