A UK security investigation, yet to be published, has raised "very, very serious" questions over Huawei's limited 5G role in Britain, the FT said.
Separately Monday, Culture Secretary Oliver Dowden confirmed he had received the National Cyber Security Centre report, adding that there would be a "significant impact" on Huawei's 5G role in Britain.
British Prime Minister Boris Johnson is under intense pressure from the US to cut ties with Huawei.
US officials argue that the company could spy on Western communications or simply shut down the UK network under orders from Beijing -- a charge the company denies.
Huawei's position has been complicated further by the US administration's decision to roll out a new wave of sanctions aimed at crippling the company's production of the chips used in 5G.
The FT said Johnson was drawing up plans to remove the Huawei technology from Britain's 5G network after warnings that the US sanctions could curtail the company's access to American semiconductors and force it to use riskier supplies.
