HP Sauce could be given protected status by the European Commission, putting it on a par with Champagne and Stilton cheese.
The idea, which would mean production of the world-famous condiment would have to remain in Birmingham, is being floated by city councillors.
Paul Tilsley, the deputy council leader, said he was willing to look at any suggestion that might prevent HP Sauce parent company Heinz from closing its Aston Cross plant and moving production to Holland.
The council would argue that water from Aston gives HP Sauce its unique qualities.
The suggestion came as hopes began to rise that Heinz may be willing to compromise.
Jack Dromey, the deputy general secretary of the TGWU who led a protest march against the closure last weekend, said in a letter to the council that he believed Heinz was considering a "rescue package".
The possibility of a change of heart was also raised by Ken Hardeman, the Birmingham cabinet member for regeneration, who said the council and the regional development agency were prepared to offer financial assistance to enable HP Sauce to continue to be produced in Birmingham.
Coun Hardeman said this could be achieved either by persuading Heinz to make more use of the Aston Cross factory or by finding an alternative location in Birmingham.
"Heinz are desperately concerned to try to preserve the name HP in what, to them, is economically the best package," Coun Hardeman added.