Commonwealth prosecutors are locked in talks with the government to secure additional funding, as they brace for the potential fall-out from the banking royal commission.

Commonwealth Director of Public Prosecutions director Sarah McNaughton said the agency would need to ‘de-prioritise’ some of its work if financial regulators referred on a large number of legal cases.

Ms McNaughton confirmed on Tuesday that she has been in discussions with the attorney-general and other ministers to ask for more funding, with money earmarked for a serious financial crime task force due to run out next year.