Gov. Arnold Schwarzenegger is expected to call for privatizing California's lottery in a revised budget proposal next week, according to a published report.

Under the proposal, the lottery would be leased to a private company for up to 40 years in exchange for a lump-sum payment or series of payments, the Los Angeles Times reported on its Web site late Wednesday.

The governor's communication's director, Adam Mendelsohn, confirmed Schwarzenegger's staff has been working with investment banks on the proposal. The governor is expected to include the plan in his revised budget Monday, the newspaper said.

"California has one of the lowest-performing lotteries in the country," Mendelsohn said. "Taxpayers could see two to three times more money go into state coffers."

Opposition is likely from activists who are seeking to stop further expansion of gambling in the state, as well as fiscal conservatives who are uneasy with trading off future revenue for immediate cash.