British Steel will resume talks with the government today (Friday) in a bid to avoid collapse.
The firm secured funding to remain in business until the end of May but has warned it requires further funding to continue beyond that.
According to the BBC, sources close to Greybull Capital, which owns British Steel, say talks will take places at "ministerial level".
Blaming "Brexit-related issues", British Steel is understood to be seeking a £75 million bailout from the government. If that fails, the firm is likely to fall into administration unless the government decides to take it into public ownership.
A British Steel spokesperson said: "As the business navigates the significant uncertainties caused by Brexit, and explores options to strengthen the business for the long term, we are pleased to confirm that we have the required liquidity while we work towards a permanent solution."
In April, British Steel borrowed £100m from the government to allow it to pay an EU carbon bill.
British Steel is the second largest steel company in the UK, with 4,500 employees and a further 20,000 jobs indirectly created through the supply chain.