Philip Hammond is reportedly set to tell ministers a second referendum may be necessary to break the Brexit deadlock.
The Chancellor will tell a lengthy meeting of Theresa May's cabinet the party either needs to compromise or organise a new poll, according to the Times.
He'll reportedly tell Mrs May's top team neither the country nor the Conservative party can afford a General Election.
Number 10 say the Prime Minister remains opposed to a second referendum "in all circumstances."
It comes the morning after Mr Hammond was accused of engineering a cross-party "coup" in a bid to block Brexit.
Brexit: EU says UK is facing the 'abyss' with No Deal 'more likely by the day'
Hardline Brexiteer Mark Francois claimed: "What happened this evening was a number of members of the cabinet led by Philip Hammond, utterly in cahoots with backbenchers across the house, attempted to stop us leaving the European Union."
"What happened if you look at the mathematics, is the Tory benches rallied to defeat it, the overwhelming number of votes against all the propositions were from Conservative MPs.
And if you're listening, Mr Hammond," he added, "my fraternal message to you is: "Up yours!"
Elsewhere it's been reported Brexit-supporting ministers will demand May give a final ultimatum to fix the Irish backstop, the most controversial part of her deal, or see the United Kingdom leave without a deal.
Brexit shambles continues as MPs reject all alternatives yet again
EU chiefs today warned the UK is facing the "abyss" with a No Deal Brexit looking more likely by the day.
Guy Verhofstadt and Michel Barnier sounded the alarm as Theresa May prepared for a four-hour Cabinet showdown to discuss delaying Brexit - or crashing out without an agreement.
Mr Barnier said: "As things stand now the option of no deal looks very likely. I have to be very sincere with you.
"We have prepared for no deal. It's not the option I would have gone for. You don't need a negotiator for no deal, do you? You need a negotiator for a deal.
"And that's what we've done. But we are prepared. We've done some serious preparation for this over a number of months now."
