HS2 will start at Euston rather than Old Oak Common - but between Birmingham and Manchester it will not be high speed, Sky News understands.
The rail line will stop in Manchester, but from Birmingham it will switch to use existing West Coast Mainline track.
It will therefore not be high speed after Birmingham - effectively confirming days of speculation that the northern leg of the controversial project has been shelved.
Alongside the doubt over Manchester, there have also been question marks over Euston station and whether the line would terminate there as originally planned.
There had been rumours that it could stop at Old Oak Common instead, but Sky News understands the rail line will stop at Euston in a move that could be designed to placate critics.
The development, broken on the Politics Hub with Sophy Ridge programme, follows repeated attempts by Rishi Sunak and other members of the Cabinet to bat away questions regarding the future of the northern leg of the project.
The government initially tried to downplay the original reports, saying they were "incorrect" and that no "final decisions" had been made regarding the northern leg, known as phase two.