Ralph Blewitt, a former AWU Victorian secretary, confirmed he will travel from Malaysia to meet with his legal team in Melbourne before providing a statement to Victorian detectives.
His evidence will shed light on the scandal that involved up to $1 million in misappropriated union funds. He is also expected to outline the role played by Ms Gillard's former boyfriend Bruce Wilson.
The key development comes as legal documents from the 17-year-old union scandal resurfaced after earlier fears they had gone permanently missing.
The Federal Court confirmed "missing Queensland files" dating back to the mid-1990s had been found in its Melbourne registry.
The documents are understood to outline how the AWU national executive first responded when confronted with allegations over the fraud, in late 1995.
"Following an exhaustive search of relevant Federal Court registries, the missing Queensland files listed above were today found in the Victorian Registry in Melbourne," a court spokesman said.
Mr Blewitt said he wanted to provide a "full and accurate statement" to police detailing his involvement - and knowledge - of the AWU scandal.
Along with Mr Wilson, the former unionist established at least one entity - the AWU Workplace Reform Association - that was used to channel about $400,000 in funds from corporations.
Ms Gillard, then a solicitor with Slater & Gordon, gave legal advice on incorporation of the association.
In her 1995 exit interview from the law firm, Ms Gillard described the entity as a "slush" fund used to help union officials get re-elected.
Mr Blewitt, if he talks to police, will speak about his role in buying a Melbourne property - at Kerr St, Fitzroy - paid for with union funds.
Mr Wilson, who was in a relationship with the PM during this period, has refused to speak about the events. He remains in a coastal village north of Sydney.
Mr Blewitt's lawyer Bob Galbally last night said his client had reached "an arrangement and agreement with Victorian police for Mr Blewitt to make a statement".
He wanted "police to investigate" all aspects of the scandal.
Mr Blewitt previously said he would co-operate if he was granted immunity from prosecution.
In a sign the opposition is not backing away, Tony Abbott yesterday said the "Prime Minister does have questions to answer".
"I'm happy to give her the benefit of the doubt, but we've got to hear her side of the story and all we've heard so far from the Prime Minister is stonewalling," the Opposition Leader said.
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