Labour chief whip Nick Brown has said it would be better to cancel Brexit than to leave the EU without a withdrawal agreement.
It follows warnings that a "no-deal" Brexit would be catastrophic for employers in the North East , particularly manufacturers and exporters.
Mr Brown, MP for Newcastle East , also said there was "a strong argument" for a referendum asking voters to choose between carrying out Brexit with a deal, or staying in the EU.
In an email to a constituent, he said he could back "revoking Article 50". This is a reference to Article 50 of the Treaty on European Union, which allows members to leave the EU, and revoking Article 50 is another way of saying cancelling Brexit.
Mr Brown said: "On the question of leaving with no deal or revoking Article 50 I would personally favour revoking Article 50. However I'm not sure that we are at this stage yet."
He went on to say: "I do believe there is a strong argument for a confirmatory ballot on a Brexit deal and the option of remaining in the EU.
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"I am a moderate Remainer and believe that continued membership of the EU is in the national interest.
"I also believe it is in the overwhelming interest of the North East of England.
"In such a ballot, as in the 2016 referendum, I would campaign and vote to remain in the EU."
Sedgefield Labour MP Phil Wilson and Hove MP Peter Kyle are to propose an amendment calling for a "confirmatory ballot" of the type backed by Mr Brown.
It's thought this will have the formal backing of the Labour Party when it is tabled, although it's not clear when that will be.
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Their proposal would involve the House of Commons approving a deal to leave the EU on condition that it is then put to the public in a referendum. Other options on the ballot paper would include staying in the EU.
Mr Brown told ChronicleLive : "I'm dealing with hundreds of letters about this issue, as you'd expect.
"I try to answer the questions that are put to me clearly.
"In every letter I have sent I think I've said I am a 'moderate Remainer', which is my position.
"Our party conference last autumn envisaged taking the issue back to the people in a second referendum, and if we are to do this then I favour a confirmatory ballot. In other words, asking people whether they are satisfied with the Government's negotiated Brexit or whether they wish to remain in the European Union."
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Labour backbencher Catherine McKinnell, MP for Newcastle North , has also said she could back cancelling Brexit if the choice was between this or leaving without a deal.
In a post on her website, she said: "I didn’t come into politics to make my constituents poorer, and I certainly didn’t get elected in order to drive my country – and region’s – economy off a cliff.
"Should the Prime Minister fail to back the Kyle-Wilson proposal, I am therefore prepared to do what it takes to prevent a no deal Brexit from happening – including by supporting the revocation of Article 50 should this become necessary."
A Treasury study found the North East’s economy will be 11% smaller 15 years after Brexit if there is a deal, or 16% smaller if we leave the EU without a deal.
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