A significant fisheries announcement is set to be made Tuesday that will see the "last in, first out" (LIFO) policy in the shrimp fishery temporarily suspended by the federal government, CBC News has learned.

A four-person panel will be appointed to study that policy that has come under heavy criticism from local politicians and fishermen, who say it unfairly hinders small inshore boats because they were last to enter the fishery.

The panel will report its findings by mid-June, sources said.

The shrimp fishery in areas four and five will continue as planned, but area six — off southern Labrador and northern Newfoundland — will be suspended pending the panel's report.

Area six has seen significant stock declines, and a scientific assessment is currently being conducted in the area.

The federal policy on northern shrimp is commonly referred to as LIFO, and its goal is to protect fishing licences for those who have held them the longest.

With files from David Cochrane