Ministers are set to unveil plans for digital driving licences next week, according to reports.
The Times reported on Saturday that the licences will be available through a new government app, potentially by the end of this year.
Officials have emphasised that a digital licence would not be mandatory.
The digital wallet that will contain the licence would be accessed through a Government app which will have security measures similar to banking apps, according to reports.
There will also be protections in place to ensure only the licence holder will be able to access it, and it is understood this will be made possible through inbuilt security features already in smartphones.
A Government spokesperson said: “This Government is committed to using technology to make people’s lives easier and transform public services.
“Technology now makes it possible for digital identities to be more secure than physical ones, but we remain clear that they will not be made mandatory.”
The photocard driving licence was introduced to the UK in 1998. It had to be used in conjunction with a paper counterpart until that requirement was abolished in 2015.