The home secretary hopes to introduce the first wave of ID cards within three years, Home Office sources have suggested.
Despite Tory claims that ID cards will do little to combat terrorism, David Blunkett appears set to press ahead with the controversial policy quicker than expected.
Legislation is expected within the next three weeks. That could pave the way for the introduction of the cards for foreign nationals within three years.
British citizens applying for a passport from that point will also be able to apply for an ID card - although a universal and compulsory scheme is unlikely to be introduced until 2010.
PM's backing
The prime minister has given his full backing to the system, despite high level Cabinet fears about a civil liberties backlash.
Speaking to journalists recently Tony Blair said ID cards may have to be introduced "more quickly" as a result of the increased terror threat.
But speaking this weekend, the shadow home secretary Oliver Letwin said ID cards would not necessarily be effective in combating terrorism.
"I really worry about whether we are embarking on a course of action that will be expensive and complicated and has civil liberties implications and will ultimately be unproductive," he told BBC Radio Four.
"We really ought to be very careful before we go down that road that there is a practical outcome that is worth a candle."
