As his family prepares to mark the first anniversary of his death on Thursday they learned the news the option is being considered in a letter from the Justice Secretary Robert Buckland.
The development comes after the idea was suggested by their MP Andrea Leadsom.
In the letter to their MP the Justice Secretary said: "The suggestions you put forward to resolving the impasse by holding a trial virtually or in absentia are as you know being considered by the Attorney General and she will respond as decisions about criminal proceedings in individual cases are a matter for her and the Director of Public Prosecutions."
The news emerged as Harry Dunn’s parents were being interviewed by ITV News.
The strain of the twists and turns they're still going through in their fight for justice for their son was clear in the tears and hugs when they heard.
Harry Dunn’s mother Charlotte Charles said: "It’s not something we would object to. We have said all along we would want her to face the UK justice system."
"That would be my promise (to Harry) fulfilled. It’s definitely not something we would object to," she added.
The family believe it's for the authorities to decide the best way for Justice to be delivered.
Harry Dunn’s father Tim urged Anne Sacoolas and the US authorities to do the right thing, "Maybe think about us and it would help us a family and maybe give closure for her [Sacoolas] as well if it could go this way. I would say please really really consider it," he said.
Harry Dunn was killed when the motorbike at the age of 19 when he was riding was allegedly hit by a car driven by Anne Sacoolas on August 27 2019, near RAF Croughton in Northamptonshire.
The wife of a US military intelligence officer returned to America nearly three weeks after the crash.
The US government claimed she had diplomatic immunity.
She was charged with Causing Death by Dangerous Driving last December. But the US authorities have refused an extradition request from the UK.
As Harry Dunn’s family prepare for the first anniversary of his death on Thursday they spoke to ITV News about the trauma and pain they’re still living with.
Tim Dunn said: "Last thing I think about when I go to bed at night and first thing I think about in the morning is Harry 100%."
"That’s why if feels only yesterday or the day before that we actually lost him," he added.
As his parents looked at photographs of Harry growing up they spoke of the memories they cherish.
"I look at them every day. [Without starting to cry...] I love looking at them because I miss him, really miss him. We all miss him. I love looking at his face and then you’ll remember what was happening at that time in the photo and that will make you happy or smile and it brings back good memories."
Harry Dunn’s mother Charlotte said: "I promised Harry, I promised my boy that I would get him justice and that is enough to get you out of bed each morning."
"I don’t feel proud of myself yet because I’ve not fulfilled my promise to Harry. I want to be able to look at his eyes in the photos knowing that I’ve done it. Then I’ll be able to enjoy looking at those beautiful eyes again."
On the possibility of a virtual trial being held Radd Seiger, the family's adviser and spokesperson said: "When we started this campaign with the family last October, we were very clear in our objectives."
"The main one was very simple. You do not get to kill someone in a rules based society, no matter who you are, and just walk away."
He added: "If the authorities decide that a British trial led by a British judge in a British Court should take place with Mrs Sacoolas attending virtually, then the parents will raise no objection."
"They have never been concerned with the outcome of any criminal case."
"Their measured, respectful call has simply been that Mrs Sacoolas must go through it."
"The outcome is not within the control of any victim of a crime but every victim is entitled to see that the life of their lost loved one did mean something, did matter, and that they had a fair crack of the whip at justice."
"Were any trial to take place with Mrs Sacoolas attending remotely from the USA, we believe that it would be first in English history," he added.
When Anne Sacoolas was charged in December 2019 her lawyer said in a statement:"Anne is devastated by this tragic accident and continues to extend her deepest condolences to the family."
"Anne would do whatever she could to bring Harry back. She is a mother herself and cannot imagine the pain of the loss of a child. She has cooperated fully with the investigation and accepted responsibility."
"This was an accident, and a criminal prosecution with a potential penalty of 14 years imprisonment is simply not a proportionate response."