The proposal is thought to be under consultation between the business, environment and transport departments as they thrash out the terms of the policy call “Road to Zero”.

It follows on from last summer’s announcement that from 2040 the sale of new cars with only petrol or diesel engines would be banned.

However, this initiative led by the Department for the Environment caused huge confusion among both the car industry and public. Civil servants were initially unable to say whether hybrids would be caught up in the plan.

It is thought the Road to Zero is intended to end this confusion but news that ministers are even considering the move has caused rage in the car industry.

The Society of Motor Manufacturers and Traders, which speaks for Britain’s automotive sector, hit out at what it described as “misleading messaging” from the Government with “policy communicated by leaks”.

Mike Hawes, chief executive of the trade body, warned that ministers do not understand the public’s reluctance about swapping to electric vehicles and the consequences of such a policy.

“Industry shares Government’s goal of zero emission transport and is investing billions in new technologies but industry cannot dictate the pace of change nor levels of consumer demand,” he said.

“Unrealistic targets and misleading messaging on bans will only undermine our efforts to realise this future, confusing consumers and wreaking havoc on the new car market.”

He added that the SMMT “cannot support ambition levels which do not appreciate how industry, the consumer or the market operate”, saying the Government’s plans are based on “neither fact nor substance”.

If the Government wants to drive more people into battery-powered cars, the SMMT said ministers will have to “provide a world-class package of incentives and support to make this a credible policy”.

This would have to include a massive increase in the number of charging points available for electric vehicles. There are currently thought to be about 16,000 public charging points in the UK, supporting just over 200,000 electric vehicles out of the 37m vehicles on Britain’s roads.

The Government’s unclear policy towards diesel has already been blamed by car-makers for a collapse in vehicle sales in the UK over the past year.

Ministers are trying to dissuade people from buying diesel cars – which the Government says emit higher levels of harmful nitrous oxides gases than petrol – with the introduction of higher rates of vehicle excise duty.

Sales of diesel vehicles have fallen to 33pc of the UK market as a result, down from 44pc a year ago. Jaguar Land Rover – almost all of whose cars sold in Britain are diesel powered – has shed 1,000 jobs, with the losses blamed on a lack of clarity from the Government.

A government spokesman said: “It is categorically untrue that Government is planning to ban the sale of hybrid cars in the UK by 2040. We do not comment on leaked draft documents. The Road to Zero Strategy is yet to be finalised and has not been agreed.”