Prime Minister David Cameron has commissioned a review of the Muslim Brotherhood’s UK activity, No 10 says.
The Muslim Brotherhood is an Egyptian political organisation, which Cairo has declared a terrorist group.
Recent press reports have suggested members have moved to London to escape the crackdown in Egypt, where the group backs ousted president Mohammed Morsi.
Number 10 said the review would examine the group’s philosophy and activities, and the government’s policy towards it.
The Egyptian political organisation’s backing installed Mr Morsi as the country’s first civilian president but he was ousted in military coup last year after widespread street protests.
In December, the new Egyptian government declared the Muslim Brotherhood a terrorist group after blaming it for an attack on a police station that killed 16 people.
A Downing Street spokesman said in a statement: “The prime minister has commissioned an internal government review into the philosophy and activities of the Muslim Brotherhood and the government’s policy towards the organisation.”
According to the Times, the review is being led by Sir John Jenkins, Britain’s ambassador to Saudi Arabia, which has declared the Muslim Brotherhood a terrorist organisation.
The newspaper quoted officials as saying it was “possible but unlikely” the Muslim Brotherhood would be added to the list of groups banned by Britain for terrorist connections.
Meanwhile, a date of 26-27 May has been set for the first round of Egypt’s presidential poll, days after army chief Field Marshal Abdul Fattah al-Sisi resigned and announced his candidature.
Correspondents say Mr Sisi, who led the overthrow of Mr Morsi, is likely to win the presidency given his popularity and the lack of any serious rivals.
If he does not win more than 50% in the first round of voting, a second round will be held on 16-17 June.
Since Mr Morsi’s overthrow, more than 1,000 people have been killed and thousands of Muslim Brotherhood supporters detained in a crackdown by the interim authorities which has been condemned by human rights campaigners.