Ibiza, Majorca and Malta could be put on the government's green list for travel tomorrow.
The Times said the Mediterranean islands are among a "handful" of places being considered for quarantine-free trips ahead of the update to the traffic light system on Thursday.
The weekly rate of coronavirus cases per 100,000 people on Malta is just 1.6, compared with 108.4 in the UK, according to the European Centre for Disease Prevention and Control (ECDC).
READ MORE: Green list could see more countries added tomorrow after minister's hint
Before the pandemic, British tourists made around half a million visits to Malta annually.
The Maltese authorities require travellers from the UK to have evidence of a negative PCR test taken up to 72 hours before their arrival.
Those that do not have this documentation must take a swab test on arrival or quarantine for 14 days.
The ECDC does not publish figures for the Balearic Islands - which include Ibiza, Menorca and Majorca - but the weekly case rate for the whole of Spain is 48.3.
People returning to the UK from green list destinations are not required to self-isolate, but there are currently no viable major tourist destinations in the green list.
Malta and Spain are currently on the amber list, alongside other popular summer hotspots such as Portugal, Italy and Greece.
Health Secretary Matt Hancock said on Tuesday that the Government is "working on" plans to allow quarantine-free travel for fully vaccinated Britons returning from amber locations.
And media minister John Whittingdale told Sky News on Wednesday that the green list will be reviewed this week and "I hope that we can put more countries on to it".
But he urged people to go on holiday in Britain.
He said: "You can have a great holiday in Britain and I think a very large number of people will decide this year that that's what they will do.
"Having said that, people like to get away to the sun and there are a number of countries on the green list, and hopefully it will be possible to increase that number."
