Lancashire "looks like" it will become the next area to move to Tier 3 of England's coronavirus restrictions, a senior local leader has told Sky News.
Burnley mayor Wajid Khan said it was "safe to say" the county will be placed in the top band of new measures and that is "what the evidence is suggesting we should be doing".
But discussions with the government are continuing this morning around more financial support.
A final announcement is expected within hours.
Liverpool City Region is currently the only place under the highest category of the government's new three-tier system for localised restrictions.
Under Tier 3, people are banned from socialising with other households both indoors and in private gardens, while bars and pubs are closed unless they can operate as restaurants only.
Mr Khan accused Number 10 of "dictating, not negotiating", telling Sky's Kay Burley: "We are fighting back and we want more money to help support businesses, to keep people in jobs in struggling sectors."
But he conceded: "I think it's safe to say we will be moving into Tier 3 from all my understanding from my discussions with leaders and people involved there.
"It's just how much support the government can look at."
Yesterday, several major areas moved up to Tier 2 - including London, Essex, Elmbridge, Barrow-in-Furness, North East Derbyshire, Erewash, Chesterfield, and York.
Southend and Thurrock in Essex are not included in the new measures because they are unitary authorities.
Tier 2 restrictions mean people cannot meet other households socially indoors - whether at home or at other venues such as pubs.
The "rule of six" still applies in outdoor settings - as it does all over the country, and people are advised to "reduce the number of journeys where possible".
Meanwhile, leaders in Greater Manchester have "unanimously opposed" being put into Tier 3, amid a bitter political row with Westminster.
A call between Greater Manchester leaders and Downing Street officials failed to reach an agreement on new coronavirus rules on Thursday.
Sir Richard Leese, leader of Manchester City Council, said there are no further discussions with Westminster scheduled for today.