Foreign Secretary William Hague will announce a plan on Tuesday which will lead to the re-opening of the British embassy in Iran’s capital, Tehran, BBC reported.
Full diplomatic relations with Iran were suspended after attacks on the British embassy in Iran in 2011.
The election of a new Iranian prime minister and agreement on how to deal with Iran’s nuclear programme has warmed diplomatic relations.
Mr Hague is expected to take questions from MPs at 11:30 BST.
The shared interest in confronting ISIS militants in Iraq has accelerated contacts between the West and Iran.
BBC political editor Nick Robinson said William Hague spoke to Iran’s foreign minister over the weekend.
Robinson said he understood that the statement – a written one to MPs at 09:30 BST- would not lead to the instant re-opening of the embassy