Furloughed workers could be asked to return to work part-time.
The move is being examined as part of a bid to scale back the scheme that's believed to have cost the economy £8billion so far.
Chancellor Rishi Sunak and business secretary Alox Sharma have already held talks with business leaders and trade unions.
It's understood the UK Government is planning to announced details on how the scheme will be wound down as soon as next week, the Mirror reports.
Craig Beaumont, director of external affairs at the Federation of Small Businesses, which represents members across the UK, said: "We really hope to see progress made on a part-time furlough because smaller businesses in particular benefit from being able to quote for new work, keep in touch with employees and pay their invoices."
It is understood workers in pubs, restaurants and hotels and tourism could remain fully furloughed for longer.
The Financial Times says Mr Sharma had "positive signals around flexibility of the scheme" in the discussions.
The original plan was to use the UK Government funded scheme until the end of June. It currently subsidises 80 per cent of furloughed employees' wages, up to £2,500 every month.
Unions have warned they might not recommend their millions-strong membership to resume their roles if safety is not assured.
"The trade union movement wants to be able to recommend the Government's back-to-work plans," Unison, Unite, the GMB, Usdaw and the Trades Union Congress wrote in a letter to the Observer.
"But for us to do that we need to ensure that ministers have listened and that we stay safe and save lives at work too."
Labour leader Sir Keir Starmer agreed the furlough scheme could not "go on infinitely" and urged the Chancellor to create a category of "semi-furloughed" people who can work part time.
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