This will be the first new portrait of the monarch since 1998 and only the fifth image commissioned during the Queen’s 62-year reign.
A number of designs have been submitted by specialist designers for the new portrait, and the winning design will be revealed next year.
The designs were submitted in a closed competition and will be assessed by the Royal Mint Advisory Committee.
The current portrait of the Queen was created by Ian Rank-Broadley and has been in circulation for 16 years.
The new image of the Queen will feature on the new £1 coin, which is set to go into circulation in 2017.
In September, the Royal Mint launched a public design competition to find designs for the “tails” side, with the winner to receive a £10 000 fee for their design, which will stay in circulation for around 30 years.