A Chinese deal to rescue British Steel from oblivion could collapse after the French government indicated it would block the sale.

French finance minister Bruno Le Maire told Chancellor Sajid Javid the Paris government would not sign off on a deal, according to a Sky News report.

Scunthorpe-based British Steel owns the Hayange steel mill in northeast France that produces rails and is a key supplier to the French railway network, meaning Paris views it as a strategic supplier.

According to the report, Mr Le Maire told Mr Javid there was “no way” the £50m sale of British Steel to a Chinese buyer would be supported by the French government.

The message, passed on at a meeting in Brussels last week, is reported to have “come with the blessing” of French president Emmanuel Macron.

However, waiting to swoop on British Steel is Turkish industrial investor Cengiz, which indicated it would not face such opposition from France.

At the weekend Cengiz confirmed that is was ready to buy British Steel if the Jingye deal fails.

As news of Mr Le Maire's comments broke, Omer Mafa, chief executive of Cengiz, said he was "ready and waiting to engage" over a deal to take on British Steel.

In a reference to Paris's fears about a Chinese owner of Hayange, an asset with strategic importance, he said: “Cengiz enjoys a strong trading relationship with French industries such as energy, mining and aviation.”

French resistance to the sale of Hayange is an open secret in the steel industry.

One highly placed steel source said: “Hayange will be sold to the Chinese over Le Maire’s dead body. There is no way Paris will allow it.”