A new law could be brought in to quash the convictions of Post Office branch managers caught up in the Horizon IT scandal under plans being considered by ministers.
Lord Chancellor Alex Chalk has held talks with senior judges about how to address the miscarriage of justice suffered by hundreds of subpostmasters.
He told MPs that “active consideration” was being given to the idea of legislation to clear the names of those affected by the “appalling injustice”.
“I expect to be able to make further announcements shortly,” Justice Secretary Mr Chalk told the Commons.
Under normal circumstances, the Criminal Cases Review Commission would look at the individual convictions and potentially send them to the Court of Appeal.
But the unprecedented scale of the Horizon scandal could require the extraordinary step of blanket legislation to clear the names of those affected.
Mr Chalk said there were “truly exceptional circumstances”, adding “it is truly unprecedented and it will need an appropriate resolution”.
More than 700 Post Office branch managers were convicted after faulty Fujitsu accounting software Horizon made it look like money was missing from their shops.
The IT giant, which still has dozens of Government contracts, will be “held accountable” legally or financially if the public inquiry finds it blundered in the Horizon scandal, Downing Street said.
Asked whether the Government will stop awarding Government contracts to Fujitsu, the Prime Minister’s official spokesman said: “In general, we consider companies’ conduct as part of the formal procurement process.
“So, once the full facts have been established by the inquiry, we will make further judgments, but it’s important we allow that process to take place.”
Existing contracts are also kept under review, he added.
Cabinet minister Mel Stride told LBC Radio that “perhaps it won’t just be the taxpayer that is on the hook” for compensation costs if the firm is found to be culpable.
A Fujitsu spokesman said: “The current Post Office Horizon IT statutory inquiry is examining complex events stretching back over 20 years to understand who knew what, when, and what they did with that knowledge.
“The inquiry has reinforced the devastating impact on postmasters’ lives and that of their families, and Fujitsu has apologised for its role in their suffering.
“Fujitsu is fully committed to supporting the inquiry in order to understand what happened and to learn from it. Out of respect for the inquiry process, it would be inappropriate for Fujitsu to comment further at this time.”
Fujitsu has been called to answer questions from MPs on an influential select committee next week.
Alan Bates, the former subpostmaster who brought a claim against the Post Office and was the subject of a recent ITV drama, has also been invited to attend the committee.
Post Office minister Kevin Hollinrake has confirmed he will attend the Business and Trade Committee evidence session on January 16.
Related: Elevenses: The Real Horizon Scandal