Quarantine-free trips to Malta are likely to be allowed from next week with holidays to the Balearic Islands also possible, according to reports.
The Government will update the nation's traffic light travel system on Wednesday.
It is hoped that some popular tourist spots will be added to the green list, giving lockdown-weary Brits the chance for a holiday.
According to the Times, Malta could be the only addition.
But a source told the paper that there was a "real possibility" the Balearic Islands could be opened up too - a move described as a "game changer" for the beleaguered travel industry.
The archipelago includes Ibiza, Mallorca and Menora - destinations usually visited by more than five million Brits each year.
It is also thought that there is an outside chance some Caribbean islands could be added - although the Greek islands are to remain shut.
Any change of status would allow holidaymakers to travel to permitted countries from June 29.
They could then return without a 10-day quarantine.
Malta is one of the countries leading the way in Europe in terms of vaccinations, with nearly 60 per cent fully jabbed.
The latest travel news comes as it emerges that vaccinated Brits may soon not need to quarantine on return from holiday.
Matt Hancock is in favour of daily tests instead, and said on Tuesday: "We’re working on it."
Unvaccinated children may also be allowed to travel.
The Health Secretary said the Government was looking at how to scrap the requirement for people to isolate for 10 days on return from amber countries.
He said daily testing “has not been clinically advised yet” but added: “We’re working on it. We’re working on plans to essentially allow the vaccine to bring back some of the freedoms that have had to be restricted to keep people safe.
“That’s the whole purpose of the vaccination programme, that’s why it’s so important that every adult goes out and gets the jab.”
But travel bosses warned it could come too late to save battered firms and accused ministers of failing to capitalise on the success of the vaccine to boost the industry.
Association of British Travel Agents chief executive Mark Tanzer blasted ministers for telling people not to travel to amber list countries, despite the jab successes.
He told yesterday’s Travel Matters conference: “This general, ‘Don’t travel’ is damaging to the industry.
“The Government has further damaged the immediate prospects for international travel by warning against leisure travel to amber list countries, despite having its own system of testing and quarantining, adding another major customer disincentive to the hurdles already in place.
“The danger we face is here and now. The wolves are at the door."