The plans, which have not been formally submitted, come as the firm struggles with high energy prices.
British Steel is considering 800 job cuts centred on its Scunthorpe plant, the BBC understands.
The company has started to develop the plans, though the paperwork required before a consultation on redundancies has not yet been submitted.
British Steel, owned by the Chinese group Jingye, declined to comment on the plans.
It employs around 4,500 workers in the UK.
Sky News reported that the plans include the closure of the coking ovens at the firm’s Scunthorpe site.
British Steel is currently in the final stages of negotiation with the government over a £300m support package, which was contingent on further investment from the parent company and guarantees over jobs.
The company has been struggling with soaring energy prices, raising fears that it will have to shut parts of its operations.
Commenting on the planned cuts a government spokesman said: “The Business Secretary considers the success of the steel sector a priority and continues to work closely with industry to achieve this.”
The Community Union, which represents steelworkers, expressed its concern at the planned cuts.
National officer Alun Davies said: “This move would represent a betrayal of [British Steel’s] loyal workforce and their commitments to invest in the business.
“Steelworkers played their part to protect our steel industry and are being failed by both the government and British Steel who are abdicating their responsibilities to the workforce and our country.”
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