Sir Keir Starmer is expected to announce plans for a compulsory UK-wide digital ID scheme in a speech on Friday.
The prime minister believes it would help crack down on illegal working and modernise the state, according to senior figures in government.
The practicalities of the scheme will be subject to a consultation, which will also look at how to make it work for those without a smartphone or passport.
The previous Labour government’s attempt to introduce ID cards was ultimately blocked by the Conservative-Liberal Democrat coalition.
But earlier this month, Sir Keir said in an interview he thought the debate had “moved on” since then.
“We all carry a lot more digital ID now than we did 20 years ago, and I think that psychologically, it plays a different part,” he added.
Reports have suggested the government plans to use a new scheme to check people’s right to live and work in the UK.
These checks are currently based on physical documents, although routes to complete the checks online for some people have existed since 2022.
The government last year rejected a digital ID proposal suggested by former Labour Prime Minister Sir Tony Blair.