The UK transport secretary Grant Shapps will announce on Monday that restrictions will be slashed from 14 days to five if holidaymakers test negative five days after returning to the country.
The regulations will be changed to enact the new five-day regime on December 15 or 16, with people freed from quarantine as soon as they get their test results, according to the Telegraph.
The "test and release" scheme could allow people to stop quarantining once they receive a
negative Covid test result.
It is understood fast tests which give results within one hour will be used.
This will be good news for the aviation industry which has been badly hit by the coronavirus pandemic, with flights cancelled and huge loss in revenues.
A Whitehall source told the Daily Mail : "We are keen to get people flying again when it is safe to do so, and the Prime Minister is particularly concerned about the impact we have seen on business travel
"Cutting the quarantine time from 14 days to five has the potential to make a huge difference."
It comes as extended families are set to celebrate the festive period together as households will be allowed to temporarily "bubble up" for up to five days.
Ministers from England, Scotland, Wales and Northern Ireland have agreed to allow "some limited additional household bubbling for a small number of days" over Christmas, the Cabinet
Office has said.
But following a meeting on Saturday, they "reiterated the importance of allowing families and friends to meet in a careful and limited way, while recognising that this will not be a normal festive period and the risks of transmission remain very real".
Families will have to choose their bubble in advance and will be allowed to spend time indoors with them - including at the pub, according to reports.
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