An announcement on whether Channel 4 moves out of London will be made "in the near future", the Government says.
It follows reports that the Government is preparing legislation to force the broadcaster to move out of its current headquarters in Westminster, London.
Matt Hancock, the Culture Secretary, has instructed officials to being work on laws that could be driven through Parliament if Channel 4 refuses to move voluntarily, The Telegraph reports.
But it is hoped that the broadcaster’s new chief executive, Alex Mahon, will agree a voluntary move, making the legislation unnecessary.
The West Midlands is campaigning for Channel 4 to come to the region.
A spokeperson for the Department for Digital, Culture, Media and Sport said: "We have been clear that Channel 4, as a publicly-owned broadcaster, should do more to support economic growth and provide for audiences outside of London.
"Independent analysis makes clear the potential benefits of Channel 4 increasing its impact outside the capital, and we hope to agree a way forward so that the broadcaster truly reflects and represents the full diversity of the UK.
"Discussions with the broadcaster are ongoing and we will make an announcement in the near future."
Speaking in the House of Commons, Mr Hancock praised the campaign to bring Channel 4 to the West Midlands.
He said: "I have seen the campaigning with verve by the Mayor of the West Midlands for Channel 4 to move there.
"Our argument is that Channel 4 needs to do more outside of London and I can certainly see the arguments for it moving its headquarters."
He also hinted that the Government would reject compromise proposals which would see Channel 4 stay in London but commission more programmes from other parts of the country.
Mr Hancock said: "Of course a lot of this is about where the broadcast production is commissioned, but the location of the commissioners will undoubtedly help determine some of that."
While the Government is threatening laws to make Channel 4 move, the West Midlands campaign is focusing on the benefits to the broadcaster.
It's backed by MPs and council leaders from all parties as well as West Midlands Mayor Andy Street.
A Government study last year concluded that moving Channel 4 to the West Midlands would create 3,412 jobs in the region and grow the region’s economy by £235 million.
Other regions have also submitted proposals.
A Government consultation received bids to bring Channel 4 to Belfast, Bristol, Cardiff, Glasgow, Hull, Leeds, Liverpool, Greater Manchester, Nottingham, Plymouth, Sheffield, Stafford, Stoke and York.