Environment Secretary Michael Howard wants to launch the drive in the spring, perhaps as early as next month, the paper says.
Television advertising and leafleting all council tenants to ensure they are aware of purchasing schemes are among possible schemes.
No new incentives are intended but ministers believe the fall in mortgage rates and increases in council rents have tilted the balance of benefit back towards buying for council tenants.
The move is timed to coincide with the temporary relaxation on spending of councils' capital receipts announced in the Autumn Statement.
The story is also carried by the Daily Telegraph (p9), which says the move is designed to counter suggestions that the government was retreating from the ethos of home ownership to concentrate on boosting the rented sector.