The U.K. central bank went on to add that at the time the contract — to print the new notes — was signed with supplier Innovia, the Bank wasn't aware that the banknote contained tallow.
According to the Bank, the amount of tallow used in the banknotes is "extremely small" and that the substance is used in an early stage of the production process of the polymer pellets.
"Innovia is now working intensively with its supply chain and will keep the Bank informed on progress towards potential solutions."
The central bank's announcement comes just days after members of the U.K. public expressed their upset over revelations that the new polymer note contained traces of tallow, a substance which comes from animal fats.
The news caused upset among religious groups, British vegans and vegetarians, with more than 117,000 people having now signed a Change.org petition asking the bank to remove the ingredient.
Prior to the bank's latest announcement, Lynne Elliot, CEO of The Vegetarian Society, told CNBC over the phone that the central bank had been listening to the public's concerns and understood that it was a major issue for a number of people.