Sky news-Uk steel Sky News has learnt that Jeremy Hunt, the chancellor, has been advised by officials to approve a request from British Steel for public money following an intervention by Grant Shapps, the business secretary, and Michael Gove, the levelling-up secretary.
Whitehall sources said the government was expected to communicate a decision to the company in the coming days, which would see around £300m handed to it in instalments during the next few years.
The funding would be "directly linked" to a project to replace British Steel's blast furnaces at its Scunthorpe site with a greener electric arc furnace, according to one person close to the situation.
Jingye Group, British Steel's Chinese owner, would also be obliged to invest at least £1bn in the business by 2030 and make commitments relating to job retention, the person added.