The Chancellor George Osborne will announce in next week's Budget that he will consult on creating the new bonds, which may even be issued with no set redemption date, according to the BBC.
It is hoped the super long-term gilts would allow the government to lock in the current record low interest rate of 0.5% for a very long time.
If the bond proved popular with investors, future governments would pay less debt interest for years to come.
The last perpetual loan was taken out to cover the cost of World War I.
Prudential head of business development Vince Smith-Hughes discusses the consequences of pensions freedom and changes to death benefits