Sources at British Steel have confirmed reports the company, which employs more than 4,000 workers mainly in Scunthorpe, is on the brink of administration.
Representatives of the Unite union are due to meet business secretary Greg Clark this morning to discuss the future of the company.
The union is urging British Steel owner Greybull Capital to find a solution.
Last week, the firm announced it had the backing of shareholders and lenders and that operations continued as usual while it sought a "permanent solution" to its financial troubles.
A ministerial statement on assistance for the company was expected yesterday afternoon, but that didn't come.
However, it's thought ministers want to have the situation sorted out before the European elections on Thursday.