Officials are reviewing the potential of Covid-19-status certification, which would see individuals required to show vaccination status, a negative test result or proof of recent immunity.
Ministers had been looking at adapting the NHS Covid app to use the system to unlock busy events including festivals, nightclubs and sporting matches.
However, The Telegraph newspaper has reported that officials believe the concept of legally enforcing such a policy had “been killed off.”
“It’s not a case of ‘it’s finely balanced’. It’s not going to happen. Everyone says it’s dead," the newspaper’s source said.
“No one is talking about it still as a potential thing … It has been killed off really,” the source is quoted as saying.
The Prime Minister had already signalled vaccine passports were unlikely to be introduced in pubs and restaurants.
Now, nightlife bosses have responded warmly to reports that they may not be used for clubs or festivals either.
Night-Time Industries Association CEO Michael Kill said: "We have for a long time opposed the use of Covid-status certificates or 'passports' as we feel this has some considerable logistical challenges and is unworkable within the licensed settings and environments that we represent."
Micheal Gove, who is heading reviews into vaccine passports and social distancing, is expected to update MPs when they return to Parliament after recess on Monday 7 June.
No decisions yet
A Government spokesperson said: "The Covid-status certification review is ongoing and no final decisions have been taken yet.”
Hospitality bosses will also be keen to see the conclusions of a review into the future of social distancing, with hopes the ‘one metre plus’ requirement will be scrapped.
The Government has been urged to stick to its unlocking roadmap, which would see all legal limits on social contact lifted from Monday 21 June.
The Prime Minister has said "nothing in the data" currently suggests a delay would be needed but said scientists were still waiting for more data on a new variant of the virus.
Just 0.03% of participants in the Government's series of large event pilots tested positive for coronavirus in the process, according to initial reports.
Around 58,000 people took part in the regulated large-scale events in April and May, including the FA Cup final and an outside music festival.