A Cabinet minister wants to temporarily change the 'rule of six' to a rule of 12 for Christmas, it is claimed.
Business Secretary Alok Sharma backs a switch to give families "something to look forward to", the Mail on Sunday reported.
Such a change - previously suggested by some Tories - would allow families to see both sets of grandparents for Christmas dinner.
But it could prompt anger among those of other faiths after lockdown rules were brought in just before Muslim and Jewish holidays.
Contacted by the Mirror, a source close to Mr Sharma played down the report.
The Mail on Sunday had quoted a source as saying: "Alok thinks people will need something to look forward to after the next couple of difficult months.
"Doubling the rule for a couple of days allows that with only a limited extra infection risk attached."
The same source admitted to the Mail on Sunday that the idea has not yet been "formally considered" by the Treasury.
A senior Treasury source told the Mirror they had not seen the idea.
The report emerged despite the fact the 'rule of six' could be superseded in many parts of England by new rules tomorrow.
Boris Johnson will give a statement to Parliament unveiling a new 'three-tier' lockdown system on Monday afternoon.
Reports suggest pubs and restaurants will be shut in the worst-hit Tier 3 areas, shielding could resume, and residents could be banned from non-essential travel outside their area.
Any social contact indoors between people from different households would be banned in both Tier 2 and Tier 3 areas.
Only Tier 1 areas have any hope of retaining the rule of six - which makes indoor gatherings over six people illegal.
Tier 2 and Tier 3 rules suggest more than 10million people wouldn't be eligible for a Christmas easing to the rule of six even if it did happen.
