There is a 'good chance' the one-metre plus rule for social distancing can be ditched next month, Boris Johnson said.
The final decision on whether the change can be brought in from June 21 will depend on the data, the Prime Minister added.
Mr Johnson said he feels like the next stage of reopening on May 17 - which covers indoor hospitality, entertainment and possibly foreign travel - "is going to be good".
One industry chief has said a return to unrestricted trading for hospitality from June 21 is "critical" and will mean firms can "come off life support".
The comments from Kate Nicholls, chief executive of trade body UKHospitality, came as The Times reported social distancing rules will be lifted to allow pubs, restaurants and theatres to open to full capacity for the first time in more than a year.
One-way systems, screens and mask-wearing while moving around might remain for hospitality venues but customer numbers will no longer be limited, the newspaper said.
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