People who download music and films illegally face being cut off from the web under plans being considered by ministers.

Internet service providers could be legally obliged to take action against those who access pirate material.

Users suspected of breaking the rules would be subject to a "three strikes and you're out" policy, receiving an e-mailed warning first, followed by a suspension, and then finally termination of their internet contract.

The Government is expected to confirm that it intends to legislate on the issue when it publishes a green paper on the future of the creative industries next week.

Broadband firms which fail to enforce the rules could reportedly be prosecuted, and details of suspected customers made available to the courts.

A draft of the green paper reportedly states: "We will move to legislate to require internet service providers to take action on illegal filesharing."

Some six million people are estimated to download files illegally every year in the UK, costing music and film companies billions in lost revenue.

Major ISPs such as BT, Virgin and Tiscali have been in talks with the entertainment industry over introducing a voluntary scheme for policing pirate activity, but no agreement has been reached.

Sticking points are thought to include how disputed allegations would be arbitrated - for example, when customers claim other people have been "piggybacking" on their internet service.

A spokesman for the Internet Service Providers Association said it remained hopeful that a deal over a voluntary system could still emerge: "Every right-thinking body knows that self-regulation is much the better option in these areas."

A spokesman for the Department for Culture, Media and Sport said: "Early drafts of our creative economy programme document were circulated to stakeholders for comment.

"The content and proposals for the strategy have been significantly developed since then and a comprehensive plan to bolster the UK's creative industries will be published shortly.

"We will not comment on the content of the leaked document."