Furlough payments will continue through the duration of England's second lockdown, the Mirror understands.
The system, which has kept millions of workers afloat throughout the Covid-19 crisis, was due to come to an end today.
It was set to be replaced by the less generous 'Job Support Scheme' - which would see many workers get just 67% of their wages.
But full furlough arrangements will continue until December 2 - paying 80% of salaries to workers.
It comes as Boris Johnson was set to announce a second full scale lockdown in England, with nonessential retail, pubs, hairdressers and restaurants closed.
It was not immediately clear whether the payments will only continue for people already on the furlough scheme, or whether it will be reopened to new claimants as vast swathes of the economy are closed down again.
The Prime Minister said the government’s Coronavirus Job Retention Scheme - also known as the Furlough scheme - will remain open until December, with employees receiving 80% of their current salary for hours not worked, up to a maximum of £2,500.
This mirrors the furlough first offered in March.
In addition, business premises forced to close in England are to receive grants worth up to £3,000 per month under the Local Restrictions Support Grant.
Also, £1.1bn is being given to Local Authorities, distributed on the basis of £20 per head, for one-off payments to enable them to support businesses more broadly.
Mortgage holidays will also no longer end today.
The Job Support Scheme is being delayed until after December 2.
People will be told to stay at home, unless travelling for education, work, exercise, shopping for essentials or to care for vulnerable people.
The new lockdown will apply to England only and will take effect from 00.01am on Thursday.
Wales, Scotland and Northern Ireland have taken their own steps.
It will end on Wednesday 2 December, when the government seek to ease the new restrictions on a local and regional basis, according to the latest data and trends at the time.
A Commons vote to approve the new measures is expected to take place on Monday.
Like in the first lockdown, any household social mixing between different households - indoors or outdoors - will be banned.
The exception to this is two people only from two households meeting in a public open space, as above. This exemption does not apply to private gardens.
More details are expected to be spelt out, including on gov.uk, over the next few days and before Thursday.
Boris Johnson is understood to want to return to the current three-tier system, or something close to it, from December 2 onwards.
