This likely Bill, mooted by Home Secretary John Reid, will build upon the provisions laid out in the existing Terrorism Bill 2005.
The Home Secretary is currently conducting a review of the UK's capabilities and resources when it comes to tackling terrorism.
The review is intended to establish Britain's anti-terrorist efforts for the next 10 years.
This new Terrorism Bill will allow the Government to legislate to fill in any gaps in capabilities and resources which the review identifies.
Tony Blair and Commons leader Jack Straw have both suggested that the issue of a 90 day detention limit for terrorist suspects could be revisited.
Mr Blair underlined the importance of "proceeding through concensus".
The Government will take into account lessons learnt from the foiled airline plot and fill "gaps" in anti-terrorist legislation
May address the problems with control orders highlighted in court in July and August 2006, when it was ruled that the use of control orders was incompatible with Article 5 of the European Convention on Human Rights
The Government plans to revisit the issue of the detention periods for terrorist suspects. The Commons voted in favour of a 28 day detention limit (increased from 14) earlier this year following rebel Labour MPs voting with the Opposition parties
It has been suggested that the Government could scrap the existing four anti-terrorist pieces of legislation to merge them into one large bill
Other possible areas to be included could be a reformulation of control orders, expanding the freexing of assets and the use of "intercept" evidence
Responsible department: Home Office