Britain will clear Chinese telecoms equipment firm Huawei to run a UK-based cyber security center if it agrees to tighter rules to allay spying and hacking fears, a person familiar with the matter said on Wednesday.
Huawei supplies software and equipment which channels phone calls and data around Britain and has found itself at the center of a debate, particularly in the United States, over whether it is a risk for governments to allow foreign suppliers access to their networks.
Last year, the U.S. House Intelligence Committee urged U.S. telecoms companies not to do business with Huawei because it said potential Chinese state influence on the firm posed a security threat.
(Read more: More technology equals more risk in 2014: IDC)
Australia's government upheld a ban in October on Huawei bidding for work on its National Broadband Network, citing security agency advice.
Huawei, which denies any wrongdoing and maintains its work is secure, opened a technology center in Oxfordshire, southern England, in 2010 to test the security of its software and hardware to ensure that they won't expose the UK network to outside hacking or spying.