Families could be allowed to meet for Christmas if they self-isolate for two weeks during the festive period.
Ministers are reportedly discussing the plan as they pledged to do "whatever it takes" to keep families together this year.
But a backup plan could see schools closed early to allow families to isolate for two weeks before Christmas and meet safely in groups larger than six.
The Department for Health has said nothing can be guaranteed at this stage.
But testing sources have lifted the lid on ministers' plans to help keep the nation's favourite time of year as "normal" as it can be.
It comes after it was revealed on Friday that the UK is in debt by £2 trillion for the first time ever. The Government borrowed a whopping £173.7 billion between April and August.
Boris Johnson's "Moonshot" programme reportedly aims to have 10 million people tested per day.
There are hopes for everyone to have access to "pregnancy-style" home testing kits that can return a result in 20 minutes.
A person would get a "freedom pass" to get on with their lives if they show up as negative.
But with Christmas just 90 sleeps away, ministers are said to be working on other ways to save the festive holiday if testing targets are not met.
One plan being considered is to close schools early to allow a two-week voluntary quarantine for families wanting to gather in larger groups.
Government officials are also said to be considering a two-week quarantine after Christmas, meaning a month-long Christmas break from Dec 11 to Jan 10.
The rule of six currently means larger groups of people will not be able to spend Christmas together.
The PM has made it clear that stricter rules could follow, with many advisers preferring a total ban on households mixing.
But a spokesman for the Department of Health and Social Care said: "These figures and timeline are wholly inaccurate and do not represent expectations or planning.
"We are investing significant resources into piloting new tests and vaccine development."