They are produced by textile firm Hainsworth at its mill in Leeds, and distributed by coffin maker JC Atkinson, of Washington, Tyne and Wear.
According to the makers, all the materials used are biodegradable and suitable for cremation and all types of burial.
"These are an entirely new concept and are like nothing else in the coffin market," the Sun quoted Julian Atkinson, managing director of JC Atkinson, as saying.
"The wool has a truly green lineage being British, natural, sustainable and biodegradable," he added.
Rachel Hainsworth, sales director of Hainsworth, added that the caskets were "aimed at the eco-conscious customer".