Privacy campaigners say the Department for Education is to drop the controversial requirement for schools in England to collect data about pupils' nationality.
The Against Borders for Children protest group had warned the information could be used to check on the immigration status of pupils.
Campaigners hailed it as a "victory" after a boycott and legal challenges.
The Department for Education would not confirm reports of the policy change.
But the Department for Education has declined to deny or confirm that it is about to shift its position.
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