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Shoppers keep 2m apart as they queue outside shops in Bristol
A review into the 2m social distancing rule, implemented to stop the spread of coronavirus, will be completed "in the coming weeks", No 10 says.
But the PM's spokesman could not say if it would be done by the time pubs and restaurants in England are due to reopen on 4 July.
The hospitality industry and some MPs have called for the rule to be relaxed.
The spokesman said the government was in talks with hospitality but there was a duty to ensure reopening was "safe".
Conservative MP, and former party leader, Iain Duncan Smith has called for the 2m limit to be reduced, claiming it "hamstrings us in a whole series of areas".
Kate Nicholls, chief executive of the industry body UKHospitality, said that with a 2m rule, outlets would be only able to make about 30% of normal revenues, whereas 1m would increase that to 60-75%.
Speaking to BBC Breakfast, she said: "We very much welcome the government's decision to conduct a review on this because it is a matter of survival or business failure as far as hospitality is concerned."
Dr Michael Tildesley, an infectious disease scientist at the University of Warwick, said studies were "unclear" but that there was "an increase in risk with going down to one metre".
"But I have to stress this is purely based upon public health, and the government has to consider economic factors before taking a decision."
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The announcement comes as some shops in England reopen for the first time since the lockdown was introduced, with long queues reported outside Primark shops in London and Birmingham.
Retailers will still have to enforce strict safety measures including implementing one-way systems and abiding by the 2m social distancing rule.
Under the rule, the UK government currently advises people to stay 2m (6ft 6in) apart from others to avoid spreading coronavirus.
This is further than the World Health Organization's recommendation of at least 1m (just over 3ft), and some other countries like France and Denmark. But the government's scientific advisers say that being 1m apart carries up to 10 times the risk of being 2m apart.
However, there are widespread concerns about the impact of the rule on the UK economy, which is already suffering from the pandemic.
Some bars, restaurants and pubs say they will be unable to make a profit if the 2m guidance is still in place when they reopen.
Relaxing the 2m rule could also allow more children to return to school. Hamid Patel, chief executive of the Star Academy Group, has said that with 2m distancing in place, no more than 50% of secondary pupils could attend, and in some schools it would be lower.
'Margin for manoeuvre'
On Sunday, the government announced it would be reviewing the rule, with Prime Minister Boris Johnson saying there would be "margin for manoeuvre" as the number of coronavirus cases falls.
The PM's spokesman said the review would look at transmission of coronavirus in different environments, incidence rates and international comparisons.
It is to be chaired by Simon Case, the No 10 permanent secretary and will take evidence from medical experts, economists as well as considering papers from SAGE (Scientific Advisory Group for Emergencies).
Speaking to the BBC, Business Minister Paul Scully said the government did not want to be "rushed into decisions as we gradually open up the economy".
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'Safest place to be'
So far all the nations of the UK have maintained the 2m rule.
On Monday, First Minister Nicola Sturgeon said she was looking at "ongoing evidence" but added that she would not be setting a timescale for easing the rule.
"It's really important that it, or any other single aspect of trying to suppress this virus is not looked at in isolation," she said.
"If you reduce the distance that are other things you have to consider about like face coverings - and also the amount of time it is then safe for people to be in that kind of proximity."
Under the government's roadmap for England, hospitality venues could begin reopening from 4 July, but no date has been given in Scotland, Wales or NI.
In Northern Ireland, all shops were allowed to open from Friday. No dates have been set for the reopening of non-essential shops in Scotland and Wales, although each country has set out its planned stages for lifting lockdown.
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