The Commission for Racial Equality, the Disability Rights Commission and the Equal Opportunities Commission are to be merged to create a new Commission for Equality and Human Rights.
In a White paper to be published today, the DTI proposes a consolidation of all existing laws on race, disability and gender equality, to form a comprehensive anti-discrimination law.
The new body is expected to support individual cases, develop good practice among employers, and promote human rights standards and values.
The Employers Forum on Age (EFA) has welcomed the Government's plans. Sam Mercer, director, said: "EFA members recognise the advantage of having a single body which deals with each of the equality strands. However, there are also important differences between each of the equality strands which must be recognised within the structure of the commission. A one size fits all approach will not work.
"There must be expertise on each issue to enable employers to access the detailed information they will need to go beyond compliance with the regulations to achieving equality and diversity," Mercer added.