Britain could be using plastic banknotes within three years, the Bank of England is likely to confirm.
Cotton paper currency is set to be phased out as it is replaced with polymer notes, ending a 160-year tradition.
The Bank of England is expected to reveal the future of Britain’s currency in an announcement later today.
It follows three years of research into switching to plastic from paper notes, which have been used in this country since 1853.
Polymer notes last twice as long as paper, are difficult to tear, can be wiped clean and can survive 90-degree washing machine cycle. They can also be recycled.
The Bank of England initially revealed in September it was considering changing the £5 and £10 notes, but it has not commented on increased speculation that it will roll out a switch for all currency.
Governor Mark Carney is a supporter of the idea. He was running the Bank of Canada when the country introduced polymer notes in 2011.
Twenty countries already use plastic, including Mexico, Australia, New Zealand, Mauritius and Singapore.
Switching to polymer would save the Bank of England more than £100million over a decade.
According to its research, plastic notes can be used for just under six years while current paper £5 notes typically last two years.
The first plastic bank note is planned for 2016, a £5 featuring Sir Winston Churchill.