British Steel is expected to be placed into an insolvency process later on Wednesday, jeopardising hundreds of jobs on Teesside.
The Press Association (PA) and Sky News reported the news on Wednesday morning.
PA tweeted that the firm is to go into "official receivership" after failing to secure the funds it says were necessary for its future.
Meanwhile Sky News was reporting that administrators for the business services firm EY were in court finalising their appointment.
British Steel employs 700 people in the region.
The government said on Wednesday that it had worked "tirelessly" with all parties to try and find a solution.
It cited its stance on providing any kind of financial assistance as being restricted by legal issues.
The government also said it had provided a £120million bridging loan to help British Steel meet its emissions trading compliance costs.
News of its financial issues came to light in recent weeks, with the company requesting a £75m loan in order to continue trading.
Now, however, the firm appears to be on the brink of administration.
The Tees Valley Mayor, Ben Houchen, issued a statement on Wednesday morning strongly criticising Greybull Capital, the venture capital firm that owns British Steel.
He said he's attempted to convene an urgent meeting to save the sites and jobs at Lackenby and Skinningrove.
A worker who spoke to ITV Tyne Tees on Tuesday said they simply wanted an opportunity to keep going.
In a statement issued on Tuesday, British Steel said it was working to ensure its "future success".
The British Steel Group has faced various trading challenges recently. In response to this, we have been working closely with our stakeholders to consider the different funding options available to the Group.
“These negotiations have not concluded and we continue to work with all parties to achieve an outcome that secures the future success of British Steel."
Updates will follow throughout the day...