No decision has been taken on whether Greater Manchester will move into tier 3 lockdown restrictions.
Local leaders had been expecting the northern city to move from tier 2 into tier 3, the highest alert level, with pubs and bars forced to close if they aren’t serving substantial meals.
But it is thought the move has been met with resistance from council leaders due to the strain it would place on the city region’s economy.
MPs were told in a conference call with health minister Helen Whately on Thursday that a decision has not yet been taken.
Negotiations are thought to have broken down over the financial package available to the city.
Manchester Central MP Lucy Powell said there was “unanimous anger” about the possibility of tier 3 restrictions for the city.
Greater Manchester mayor Andy Burnham said on Thursday that proposals put to local leaders earlier this week were “fundamentally flawed” and would “surrender people to certain hardship in the run-up to Christmas”.
It comes as London was told it would move to tier 2 restrictions, which sees a ban on meeting indoors with people from other households, from midnight on Friday.