Dominic Raab is expected to suspend the UK's extradition treaty with Hong Kong on Monday (UK time) amid growing tensions with Beijing, The Daily Telegraph understands.
According to multiple Whitehall insiders, the Foreign Secretary is set to tell MPs that the arrangement will be temporarily halted following the imposition of the new national security law by Beijing last month.
He is likely to stop short of tearing up the agreement altogether, with senior government sources suggesting the option will be held in reserve as a "final lever to pull" should China continue to breach its international commitments.
Boris Johnson recently hit back at the imposition of China's new security law by announcing that up to three million Hong Kongers eligible for a BNO passport would have the right to come to settle in the UK.
But senior Tory MPs fear the UK's extradition treaty with its former colony could be used to try and bring back those deemed hostile to Beijing, in turn deterring others from taking up the UK's offer.
It comes after Raab on Sunday accused China of "gross, egregious" human rights abuses against the country's Uighur population, describing reports of forced sterilisation and mass re-education camps as "deeply deeply troubling".
However, when shown footage of shackled prisoners being put on a train reportedly in the province of Xinjiang, Liu Xiaoming, China's ambassador to the UK, said it was the "most beautiful place" and denied the existence of concentration camps.
Confronted with a second tape of a Uighur woman who claimed to have been forced to undergo forced sterilisation, he told the BBC's Andrew Marr Show: "There's no so-called, pervasive, massive, forced sterilisation among Uighur women in China. But I cannot rule out single cases for any country."
Separately, Donald Trump is said to be preparing to hold Boris Johnson's "feet to the fire" this week as the US Secretary of State Mike Pompeo arrives in London for talks, with China remaining at the top of Washington's agenda.
In a move described as "unusually provocative", Pompeo will meet a group of 20 cross-party MPs regarded as China "hawks" on Tuesday before he is expected to meet the Prime Minister.
While Pompeo's visit has been characterised as a "victory lap" following the UK's about turn on Huawei's involvement in the new 5G network, sources close to the China rebels say the real purpose of his trip is to push Johnson to strengthen his stance on Beijing further.
One told The Telegraph: "The visit has been written up as a victory lap, but that is plainly wrong. The Americans are not evenly remotely satisfied and the purpose of this trip is to hold the Prime Minister's feet to the fire."
Canada and Australia have already suspended their treaties with Hong Kong, while President Trump last week signed legislation ending the former colony's special status.
In a bid to force the UK government to follow suit, former Tory leader Sir Iain Duncan Smith recently tabled a series of rebel amendments to upcoming legislation which would have blocked any move by Hong Kong.
He is expected to withdraw them after Raab's statement in the House of Commons.
Speaking to Sky News on Sunday, Raab confirmed that the government had completed its review of the extradition treaty and that he would be updating Parliament today on a "range of other measures that we might wish to make".
In a later interview, he added that while the UK wanted good relations with China, it would not stand by while human rights abuses against the Uighurs took place.
"It is clear that there are gross, egregious human rights abuses going on. We are working with our international partners on this. It is deeply, deeply troubling," he told The Andrew Marr Show.
"The reports of the human aspect of it - from forced sterilisation to the education camps - are reminiscent of something we have not seen for a long, long time."
However, Xiaoming said it would be totally wrong for Britain to impose sanctions on Chinese officials, adding that Beijing was ready to respond in kind.
"If the UK goes that far to impose sanctions on any individuals in China, China will certainly make a resolute response to it," he added.
"You have seen what happened between China and the United States. They sanctioned Chinese officials, we sanctioned their senators, their officials. I do not want to see this tit-for-tat between China-US happen in China-UK relations.
"I think the UK should have its own independent foreign policy rather than dance to the tune of the Americans like what happened to Huawei."
While senior Conservatives have called for Raab to add Chinese officials to a list of human rights abusers subject to the UK's new Magnitsky sanctions, The Telegraph understands that he is unlikely to do so at this stage.
For now, ministers are said to be taking legal advice on expanding the list, which currently includes individuals from Russia, Saudi Arabia, Myanmar and North Korea.