No decision has yet been taken on whether to table a bid despite indications Prime Minister Tony Blair and Chancellor Gordon Brown support it.
"The Government is in preliminary discussions with the FA," a Treasury spokesman confirmed today (Tuesday).
Formal bidding for the 2014 tournament has yet to open, never mind the World Cup four years later.
Sources at the FA confirmed a final decision had not been made, although there did not appear to be any major obstacles to a bid.
An application to stage the 2006 World Cup ended in failure after Germany was picked as host. However, FIFA president Sepp Blatter has encouraged England to try again, describing it as "the homeland of football". New facilities already planned for the 2012 Olympics would also give the country a head-start, according to Blatter.
South Africa is staging the 2010 tournament and under FIFA's rotation policy, the 2014 World Cup should be in South America, almost certainly in Brazil.
Earlier this month Football Association chairman Geoff Thompson said England will be in a "very strong position" to mount a successful bid for the tournament.
He said: "I think because of the number of countries taking part in a World Cup finals it's almost impossible for the smaller countries to be able to host it.
"Therefore, I think the big countries in Europe would be the ones that have that opportunity. France had it 1998, Germany has it next year, Italy had it in 1990 and I think our stadia are as good if not better than the vast majority in Europe."
