However, it is understood that the National Cyber Security Centre, a wing of GCHQ, will advise that the security risk of interference by the Chinese government should be manageable.
Huawei, the Chinese telecom giant, also a world leader in 5G technologies, has been accused by the USA of conducting espionage with its high-speed telecommunications systems.
The federal government is weighing Huawei's possible participation in 5G wireless systems that will allow Canadians to do more on cellphones and other internet-connected devices at vastly greater speeds.
In addition to banning officials from spending money on Huawei equipment, the United States government has been trying to convince other countries to follow its lead and shun the company. Huawei strongly denies claims its equipment can be used for spying.
A Canadian security expert says Ottawa will be cheering from the sidelines over fresh signals that Britain believes it can manage any 5G security risks posed by Huawei Technologies.
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Tension and speculation concerning Ottawa's coming decision on 5G have been heightened by the December arrest of Huawei's chief financial officer, Meng Wanzhou, in Vancouver following a request from USA authorities and the subsequent detention of two Canadians by China on security grounds.
The report doesn't offer any further details, and an official review from the United Kingdom government - which will likely be strongly influenced by the NCSC's findings - is expected in March or April.
"As was made clear in July's Huawei Cyber Security Evaluation Centre (HCSEC) oversight board, the NCSC has concerns around Huawei's engineering and security capabilities". The US argues that if countries in the west allow Huawei to build their 5G infrastructure, the Chinese telecoms giant could work in backdoors which would allow the Chinese government access to data which flows through the network. While not commenting Monday on the media reports, it added: "We have set out the improvements we expect the company to make".
What are the security concerns over Huawei?
Australia and NZ have actually banned Huawei from contributing to their 5G network, and the U.S. has got a whole legal beef going on with the company. Speaking in Munich at a security conference last week, Sir Alex Younger, the MI6 chief, also suggested that an outright ban might not be necessary, although he said the issue was "complicated".