Tata Steel is expected to sell its entire UK business - including Port Talbot steelworks - putting thousands of jobs at risk.
The development comes after Tata's Indian owners met in Mumbai to discuss the future of the company's loss-making UK business.
ITV News understands the government could intervene and will consider nationalising the Port Talbot plant.
The news will also affect Tata plants in Rotherham, Corby and Shotton.
The company has confirmed it is considering selling off its UK business, either in whole or parts, and its European holding company has been asked to explore all options for restructuring.
Tata announced over 1,000 job losses in January with Port Talbot bearing the brunt of the cuts.
Thousands of jobs have been lost in the past year, with companies blaming cheap Chinese imports and high energy costs for the UK steel sector's demise.