Queensland's Department of Agriculture research station is currently working on the new breed of pineapple for more than a decade and it may take another two years for it is commercially available.
According to a ABC report, senior horticulturalist Garth Senewski said the AusFestival pineapple is now in the final stages of production.
"It's currently being multiplied by our commercial development partner," he said.
"It usually takes about 10 years to commercialise a new variety," he said adding its unique taste should prove popular with consumers.
"Taste tests tell us that AusFestival is a winner - it has this lovely coconut flavour, which you won't find in any other pineapple in Australia," he said.
"It's sweet, low acid, very juicy he said and added that researchers did not set out to create a coconut flavour.
"When we're doing the breeding, we're not actually looking for a coconut-flavoured pineapple or any other particular flavour," he said.