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Culture Secretary Michelle Donelan has advised against the privatisation of Channel 4 in a letter to the prime minister that has leaked online.
In the letter, obtained by the News Agents podcast, Ms Donelan said there were "better ways to ensure Channel 4's sustainability" than privatisation.
Her predecessor Nadine Dorries planned to sell the government-owned channel.
But Ms Donelan wrote: "I have concluded that pursuing a sale at this point is not the right decision."
A spokesperson for the Department for Digital, Culture, Media and Sport (DCMS) did not confirm the U-turn. "We do not comment on speculation," they said.
"The DCMS Secretary of State has been clear that we are looking again at the business case for the sale of Channel 4. We will announce more on our plans in due course."
In September, the culture secretary said she would "re-examine the business case" for privatisation.
Ms Donelan's recommendation to scrap the plan was made in a letter addressed to the prime minister, which was obtained by The News Agents' Lewis Goodall.
In it, she wrote: "After reviewing the business case, I have concluded that pursuing a sale at this point is not the right decision and there are better ways to secure C4C's (Channel 4 Corporation) sustainability and that of the independent production sector."
She added that its role in supporting the independent production sector "would be very disrupted by a sale at a time when growth and economic stability are our priorities".