British Steel has made a loan of 100 million pounds sterling in the government to pay its carbon bill in the EU, according to a source close to the company.
Money assumes that the company that participates in private actions will avoid the rise of the EU fine.
The firm said that earlier this month it needed the funds to settle the 2018 pollution bill at the end of April.
Sky News said that government money was used to pay the company's carbon credits and that British Steel would pay money in commercial terms.
The firm has been affected by a decision by the European Union to suspend the access of British companies to free carbon permits until a Brexit withdrawal agreement is ratified.
The rules of the EU emissions trading system allow industrial pollutants to use carbon credits to pay emissions from the previous year or to trade them to obtain money.
Each free license gives the company the right to issue a ton (1,000 kg) of carbon dioxide (CO2).
& # 39; Sensitive & Solidary & # 39;
The Business, Energy and Industrial Strategy Department (Beis) refused to comment specifically on British Steel, but said it was "in regular talks with a wide range of companies."
He expects Beis to make a formal announcement on Wednesdays.
British Steel said earlier that ministers and officials of the Department of Enterprise, Energy and Industrial Strategy "had been sensitive and supportive."
The private equity firm Greybull Capital rescued Tata Steel's long-term product business, which manufactures steel for the railroad and construction sectors, during the depths of the steel crisis in 2016, saving more of 4,000 jobs.
He paid a nominal rate of € 1 for the assets, but promised to fix up to 400 million pounds sterling in the business that cut British Steel.
The workers had to pay cuts and reductions of their pensions in return, but since then the company has benefited again.
The company employs 4,000 people at its Scunthorpe plant and has locations in Teesside, Cumbria and North Yorkshire.