William Hague, Secretary of State for Wales, is expected to make an announcement on the affair today after briefings from his senior advisers.
He has faced a barrage of demands for the report of the inquiry into abuse at homes in Clwyd to be published, and for a judicial inquiry to be held into the abuse, subject of Britain's biggest police investigation into child abuse.
One of the areas where the Welsh Office is taking advice is believed to be over the sections of the report which contain names and other specific details which could identify individuals.
Several people are criticised in the report, as is the Welsh Office social services inspectorate. The three independent child care experts who carried out the investigation want the report to be published and a full independent inquiry, as do child care agencies, Labour MPs in Wales, and victims of abuse.
Mr Hague may delay an announcement until all legal advice has been considered.