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A senior government source told the paper: "The climate has changed and we are now ready to allow product placement in certain circumstances."
Culture Secretary Ben Bradshaw is expected to announce a three-month consultation on the changes as early as later this week, the BBC said.
Under current British law, programmes are allowed to use products such as laptops and clothing as props but are forbidden from receiving cash in exchange for the placement.
In contrast, product placement is common on networks in the United States, with the highly popular American Idol often showing brands such as Coca-Cola logos on the cups of judges.
A spokesman for British commercial broadcaster ITV welcomed the move.
"If the government does decide to permit product placement, it will be warmly welcomed by the commercial broadcasting industry and advertisers alike," the spokesman said.
The creator of Big Brother, Peter Bazalgette, said product placement was already widespread and that lifting the ban was "hugely overdue".
"My prediction is that it could be worth 100 million pounds (114 million euros, 166 million dollars) a year to commercial TV," Bazalgette said in the Sunday Mirror.
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Culture Secretary Ben Bradshaw is expected to announce a three-month consultation on the changes as early as later this week, the BBC said.
Under current British law, programmes are allowed to use products such as laptops and clothing as props but are forbidden from receiving cash in exchange for the placement.
In contrast, product placement is common on networks in the United States, with the highly popular American Idol often showing brands such as Coca-Cola logos on the cups of judges.
A spokesman for British commercial broadcaster ITV welcomed the move.
"If the government does decide to permit product placement, it will be warmly welcomed by the commercial broadcasting industry and advertisers alike," the spokesman said.
The creator of Big Brother, Peter Bazalgette, said product placement was already widespread and that lifting the ban was "hugely overdue".
"My prediction is that it could be worth 100 million pounds (114 million euros, 166 million dollars) a year to commercial TV," Bazalgette said in the Sunday Mirror.
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