Thai firm SSI, owners of the Redcar steelworks, is to go into liquidatio.
Sources told the Press Association that the board had applied to wind up the Teesside business, with a formal announcement being made later today.
The move followed a Government has announcement of an £80 million package to support workers who have lost their jobs at the huge steel plant.
A steel summit will be held on October 16, involving steel companies, MPs, unions and governments to discuss the future of the industry
The Government has announced an £80 million package to support workers who have lost their jobs at a huge steel plant in Teesside.
Around 1,700 jobs are being axed at the Redcar site after Thai owner SSI announced it was mothballing iron and steelmaking.
The money includes funding for workers to train at local further education colleges and to help them start up their own business.
Chancellor George Osborne said the support package would help make sure Teesside is "growing and strong in the future".
Steelworkers at a plant due for closure with the loss of 1,700 jobs have told of their fears for the future.
Workers and residents have told ITV News correspondent Damon Green how they are worried the closure of the plant could impact their lives and the town the live in.
Steelworkers at a plant due for closure with the loss of 1,700 jobs will be handed details of redundancy at a meeting later.
Iron and steelmaking at the giant Redcar plant on Teesside is being shut down after Thai owner SSI said it had no other choice because of plummeting steel prices.
Steel from Redcar helped build the Sydney Harbour Bridge, Wembley Stadium and Canary Wharf in London, Roy Ruckhuss, leader of the Community union said, adding: "Warm words and platitudes from the Government are not enough - we need action now."
A task force to help those facing redundancy has been set up by the Government.
The lights could go out for good at the 98-year-old Redcar steel plant if a buyer is not found in the next week.
After that unless someone takes it over or the government step in, it will be no more, resulting in the loss of thousands of jobs in the region.
ITV News North of England Correspondent Damon Green reports:
The MP for Redcar has shown her support for 1,700 steel workers set to lose their jobs in the region as she spoke at the Labour party conference.
Anna Turley wore a T-shirt emblazoned with the words "Save Our Steel".
She described the job losses as "devastating for the community" and vowed to "do everything she can" to drum up support from the unions and government to help those affected.
"There are no other jobs" in the North East for 1,700 steel workers made redundant at Redcar on Teeside, a relative of two of the plant's workers has told ITV News.
Linda Robinson, whose brother and son-in-law work at Redcar, told North of England Correspondent Damon Green the Government "owes the people of Teeside and the steel workers" and "must step in until a buyer is found".
Labour's MP for Redcar has told ITV News the loss of 1,700 jobs as SSI closes down its plant on Teesside is an "absolutely devastating" blow for the steel-making industry.
A visibly emotional Anna Turley said she and the party would do "everything we can" to support workers and their families as they dealt with redundancy.
Tom Blenkinsop, MP for Middlesbrough South and East Cleveland, condemned Chancellor George Osborne for going "to China signing off steel agreements there which should be based in Britain".
He called on David Cameron to step in "immediately" and save the steel workers after similar steps were taken by the French and Italian governments.
Up to 1,700 jobs are to be lost as iron and steelmaking at the Redcar steel plant is closed down, owner SSI has confirmed.
SSI halted production on 18 September because of a global drop in the price of steel, and said it had "no other option".
There had been concern over whether workers would get paid their final month's wages but following intervention from unions and MPs, the plant's owner confirmed on Friday 25 September that they would be paid.
A taskforce has been set up to offer support for staff and liaise with SSI.
The local MP said the announcement was "devastating" for the area and the economy and accused the Government of "fast and loose" with the plant's future.
It's absolutely heartbreaking, it's devastating. It's a huge number of jobs, it's a huge number of livelihoods, but it is more than that to our community.
"Redcar was built on steelmaking, Teesside was built on steelmaking. It's about generations of people that have worked in that blast furnace and fought so hard, not just in the last few days but in the last few weeks, months, years, to keep steelmaking alive. It's just been allowed to fizzle out.