British Sports Minister Gerry Sutcliffe says a football team representing Britain will compete in the 2012 London Olympics even if it contains only English players.
The Scottish, Welsh and Northern Irish football associations are all opposed to a joint squad or allowing their players to take part in case it affects their independent status within the world governing body FIFA.
Sutcliffe told a parliamentary debate that although he was hopeful of having the "widest representation" from Britain in the team it was now likely that only the English FA would allow its players to compete.
FIFA president Sepp Blatter has said a British team should only comprise English players to avoid jeopardizing the status of Northern Ireland, Wales and Scotland.
However, he has also pointed out that the independent status of the four countries is enshrined in FIFA's statutes and will never be changed.
Although the four British associations are recognized as separate entities by FIFA, the International Olympic Committee recognises Britain only as an entity to compete in the Olympics.
Britain, Olympic champions in 1908 and 1912, have not played in the men's Olympic soccer finals since 1960 and have never entered a women's team because of concerns from the other home nations regarding their status.
The Olympic soccer tournament mainly comprises players aged Under-21 although up to three over-aged players are allowed to take part.