Prime Minister Rishi Sunak is expected to confirm that the HS2 high-speed rail link will end in Birmingham with the proposed extension to Manchester being cancelled, according to widespread media reports.
Rumours of the move have circulated for the past fortnight with the PM refusing to deny any of the stories.
Soaring costs are said to be behind the decision with one newspaper saying stopping HS2 in Birmingham will save the government £34 billion.
A Sky News report said Sunak will use his speech at the Tory party conference today to propose a series of alternatives, including a switch to using West Coast rail line track past Birmingham.
On that part of the route, the service will not be high speed, according to the reports.
The plan for the service to run to Euston in central London will remain despite talk it might stop at Old Oak Common on the outskirts of the capital.
The reports sparked a furious response from mayors of cities in the northwest that would be affected by HS2 now stopping in Birmingham.
Former PMs Boris Johnson and Theresa May also said it would be a mistake while former chancellor George Osborne said it would be a tragedy.
Speaking on Sky News, Science and Technology Secretary Michell Donelan said the latest reports were "still speculation".