Boris Johnson has nominated two men he kicked out of the Tories in the Commons for opposing him on Brexit for seats in the Lords.
Former Chancellors Ken Clarke and Philip Hammond had the Conservative whip withdrawn last year for attempting to block a no-deal Brexit.
They have now stood down as MPs but have continued to be critical of the prime minister's policies.
The nomination and vetting process for new peers is not yet complete.
But Mr Clarke and Mr Hammond are on Downing Street's list, according to the BBC.
No10 is also expected to nominate former Scottish Tory leader Ruth Davidson, who has also clashed with the PM over Brexit in the past, for a seat in the Lords.
That could be a final death knell to her future prospects for the party leadership, for which she was repeatedly tipped before she stood down.
Convention says the Prime Minister or Tory leader should be in the House of Commons, not the Lords, meaning Ms Davidson would have to resign and contest a Commons seat before she could stand.
Meanwhile the BBC reported that two ex-Labour MPs, Ian Austin and John Woodcock, have been nominated to sit as non-affiliated peers.
Critics of Jeremy Corbyn, Mr Austin and Mr Woodcock quit Labour before stepping down as MPs at the election, urging voters to back the Tories instead in the December poll to stop Labour coming to power.
Downing Street and the House of Lords Appointments Commission refused to comment on the report.
Former Commons speaker John Bercow has been put forward for a peerage by the outgoing Labour leader Mr Corbyn, but his nomination could be blocked amid allegations that he bullied staff.
David Leakey, who served as black rod until 2018, said that granting Mr Bercow a peerage would be a "scandal that Parliament would struggle to live down".
The former speaker denies the allegations.
It comes ahead of a reshuffle expected next week.
Environment Secretary Theresa Villiers, Business Secretary Andrea Leadsom and Work and Pensions Secretary Thérèse Coffey could lose their jobs.
Question marks remain over others including International Trade Secretary Liz Truss and Commons leader Jacob Rees-Mogg.
Those tipped for promotion include Downing Street favourite Rishi Sunak and former Cabinet minister Penny Mordaunt.