Parliament will be recalled on Saturday to debate an emergency law to save British Steel’s plant in Scunthorpe from imminent closure.
Downing Street said legislation would give ministers powers to “protect” the Lincolnshire site, which employs 2,700 people.
The move stops short of fully nationalising the company at this stage, but No 10 says “all options remain on the table”.
Talks have been taking place this week to keep production going at the firm, after its Chinese owner said its blast furnaces are “no longer financially sustainable”.
The BBC understands that ministers are seeking immediate powers to control the site so it can ensure it has enough raw materials to keep going, with current supplies due to run out in the coming weeks.
After Easter, Parliament could then be asked to give the government the power to nationalise the company.
A No 10 spokesperson said a Steel Industry (Special Measures) Bill would allow the government to “preserve capability and ensure public safety” at the site, the last place in the UK where higher-grade virgin steel is made.
“It also ensures all options remain viable for the future of the plant and the livelihoods it supports,” the spokesperson added.
“We have always been clear there is a bright future for steel in the UK. All options remain on the table.”
MPs left Westminster for their Easter break on Tuesday, and were not due to return until 22 April.
The House of Lords is also being recalled, sitting from midday, one hour after the sitting will start in the House of Commons.
Chinese company Jingye, which bought British Steel in 2020, says it has been suffering financial losses of around £700,000 a day.
Last month it began a mandatory 45-day consultation on plans to shed jobs at its steelmaking operations, blaming “highly challenging” market conditions, tariffs and costs associated with lower-carbon production techniques.
But the government is thought to have lost confidence in the company after a stand-off over who will pay for raw materials to keep the blast furnaces going.
Industry body UK Steel has warned that ending production at the Scunthorpe site would see the UK would lose vital steelmaking capabilities.
Parliament was last recalled from a scheduled break in August 2021 to discuss the US withdrawal from Afghanistan.
The House of Commons has been recalled 34 times since 1948.
