Under the new plans more roads in built-up areas will be reduced to a 20mph limit.
The plans will be presented as part of the Coalition’s attempts to boost the economy, with ministers arguing that shorter journeys on major roads will help businesses.
However, the increase to 80mph for motorways will be criticised by environmental groups, who say that higher speeds mean much higher greenhouse gas emissions.
The new top speed has also alarmed safety campaigners, who said it will mean more accidents and deaths on the roads.
The plans will be confirmed by Philip Hammond, the Transport Secretary, at next week’s Conservative conference.
He will present the move as a boost to British business.
He will also point out that the new rule simply brings the law into line with the reality on the roads.
According to the Department for Transport statistics show that half of cars exceeded the 70 mph limit on motorways last year and 14 per cent were recorded travelling at 80 mph or more.
Mr Hammond has been pushing for the higher limit for several months, but has faced resistance from Liberal Democrat ministers.
As part of a compromise deal between the Coalition parties, the Government will also expand the use of 20mph zones in many urban areas.
Brake, a road safety campaign, said the 80mph move was a mistake.
“The government should be looking to reduce the number of deaths and injuries on our road not putting forward proposals which are likely to increase them,” the group said.
“We work closely with families of those who have died in car crashes and for every statistic there are real people who are suffering.”
According to the Parliamentary Advisory Council on Transport Safety, another campaign group, raising the limit to 80mph would increase motorway casualties by between 5 and 10 per cent.
Britain’s speed limits are lower than many other countries in Europe, with France and Italy both imposing a maximum of 81mph, while some roads in Germany have no restriction at all. -By James Kirkup,29 Sep 2011