Business Secretary Peter Mandelson will again meet with UK car industry heads to discuss government-backed loans to support manufacturers through the credit crunch.
Despite an injection of £600m from parent company Tata and sales success for Jaguar over 2008 during difficult conditions, Jaguar Land Rover is thought to be struggling to fund operations and R&D and is known to be actively seeking government loans.
Ministers are reluctant to hand over cash to manufacturers for fear of introducing a precedent that encourages other struggling industries to apply for government loans.
Mandelson is also thought to be sceptical about handing over cash to foreign-owned automakers – a significant difference to other government loan packages in the US, Germany and Sweden.
But the government is known to be keen to support UK technology skills and expertise, and is expected to announce a package of loans for Jaguar Land Rover, albeit with strict conditions attached.
The government is said to be taking advice on the car industry requests and Tata's financial situation.