The government has received a report into Huawei that is likely to change its policy over the Chinese firm's role in the UK's telecoms networks.
Digital Secretary Oliver Dowden said GCHQ's National Cyber Security Centre had delivered its findings.
NCSC is believed to have said it can no longer assure the security of Huawei's products because of new US sanctions.
"We're now examining it and understanding the implications of it," Mr Dowden told BBC Radio 4's Today.
The Department for Digital, Culture, Media and Sport has yet to deliver its conclusions to the prime minister, but Boris Johnson said on Monday afternoon that he did not want the country to be "vulnerable to a high-risk state vendor".
Huawei has said it remains "open to discussions".
But one of the company's spokesmen took a tougher line over the weekend, following newspaper reports that the government might ban the purchase of new Huawei 5G equipment by the end of the year.
"UK policy is being dictated by [the] Trump administration... shouldn't the US respect a United Kingdom in the post-Brexit era being in a position to chose its own telecommunication strategy?" tweeted Paul Harrison, Huawei's head of international media, UK.
China's ambassador to the UK has warned that if the country got rid of Huawei, it would send out a wider message about its openness to foreign investment.