The Reserve Bank of Australia has announced the next $5 banknote will feature a new First Nations design and not current monarch, King Charles III.

Following Queen Elizabeth II's death, the Reserve Bank reviewed the design. In a statement on Thursday they said the $5 banknote will feature a new design.

"The Reserve Bank has decided to update the $5 banknote to feature a new design that honours the culture and history of the First Australians," it said.

"This new design will replace the portrait of Her Majesty Queen Elizabeth II. The other side of the $5 banknote will continue to feature the Australian Parliament."

The Reserve Bank will consult with First Nations people in regards to the design of the new $5 banknote. The current note will continue to be issued for the time being.

Opposition leader Peter Dutton has previously disagreed with Assistant Treasury Minister Andrew Leigh, who opposed the new king appearing on the next five dollar note.

"I'd be surprised if the Prime Minister supported Andrew Leigh," Mr Dutton told 2GB radio.

"I'd be disappointed if he did because if we're a republic at some stage, then that's a decision for the Australian people to make. But we're with our current arrangements at the moment and we should honour those arrangements and that includes in relation to the $5 note."

The $50 banknote features Ngarrindjeri author, activist, inventor, musician and preacher David Uniapon.

The current $5 banknote showcases the painting 'Possum and Wallaby Dreaming', a central dessert dot-style painting by Michael Nelson Jagamara.