That report that cited a source came barely a week after the UK government announced a ban on the purchase of new Huawei kits for 5G from next year and said that the Chinese telecom giant's equipment will be completely removed from 5G networks by the end of 2027.
However, The Sun newspaper report said that the ministers in the British government have found it "absurd" to say no to a big company wanting to come to Britain.
The news comes amid Microsoft's discussions with ByteDance
to purchase TikTok's operations in the US.
Earlier reports suggested that the talks were halted after the US President Donald Trump threatened to ban TikTok
in the country over security concerns.
has faced allegations that it could share user data with the Chinese government. The company has denied such allegations.
Following a conversation between Microsoft CEO Satya Nadella and the US President, Microsoft said it was prepared to continue talks to explore purchase of TikTok in the US.
Microsoft hopes to complete the discussion by September 15.