The federal government says it will look at various measures to encourage people to resolve disputes rather than pursuing costly court cases.

A new report, commissioned by the government, suggests there could be a significant reduction in formal litigation if dispute resolution services were better utilised.

The report, released on Wednesday, said lawyers and the public were largely unaware of the process of alternative dispute resolution.

It has recommended several changes be made, including making it a legal requirement for prospective litigants to try to resolve disputes before going to court.

They could be obliged to file a statement confirming they had taken all genuine and necessary steps to resolve their complaint before commencing legal proceedings.

There could also be legal requirements for lawyers and the courts to provide litigants with information on alternative dispute resolution services.

Attorney-General Bob McClelland welcomed the report and said the government would carefully consider the proposals before issuing a formal response in the coming months.

The Resolve to Resolve report, by the National Alternative Dispute Resolution Advisory Council, also highlighted the need for more efficient court management to speed cases up.