Arrests will be made "in the near future" over last month's protests in London against cartoons satirising the Prophet Muhammad, police have said.
The Crown Prosecution Service, after receiving evidence from Scotland Yard, said there were grounds for arrests on suspicion of public order offences.
The protests took place outside the Danish Embassy on 3 and 4 February.
Placards were seen threatening a repeat of the 11 September terrorist attacks or the 7 July London bombings.
A Metropolitan Police spokesman said: "We have been advised today that there are sufficient grounds to arrest individuals for offences under the Public Order Act.
"This includes offences that are racially or religiously aggravated."
He said the expected arrests related to evidence gathered on 3 February.
Shadow home secretary David Davis welcomed the action.
"It is now in the public interest for the matter to be brought to a conclusion with more urgency," he said.
Complaints
On Tuesday he wrote to Home Secretary Charles Clarke saying "justice must be seen to be done" over the protests and that the delay in making arrests was "unconscionable".
Scotland Yard received more than 500 complaints from members of the public about the demonstrations.
Officers subsequently examined 60 hours of video from CCTV cameras and evidence-gathering teams deployed at the protests.
No arrests were made at the time.
Omar Khayam, 22, who dressed as a suicide bomber on 4 February, was later arrested and recalled to prison for breaching parole terms.
He had last year been freed early from a five-and-a-half-year jail term for dealing cocaine and heroin.
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