Britain is likely to introduce new anti-terrorism legislation up to six months ahead of schedule.
The government wants to target extremists, particularly Islamic clerics, who glorify or encourage terrorism.
The new laws would cover preparing, training for and inciting terror acts.
Interior Minister Charles Clarke said: “We believe that is the right way to go and we believe it would enable us to address the threat that we face with a unity and determination which is critical.
“We will discuss the details of the legislation in September between ourselves and although there are no main outstanding points of difference, there are issues that we will discuss as we go through.”
Elsewhere, officials in Pakistan have confirmed three of the four London bombers visited the country last year, two for at least three months.
The toll from the attacks has risen to 56, including the four bombers.
Meanwhile, the government has reacted angrily to a report from the respected Chatham House, formerly the Royal Institute of International Affairs, which said its backing for the war in Iraq raised the risk of a terrorist attack.
It said Britain had created its own problem by playing what it called pillion passenger to the United States.
Video footage has been released of Mohammad Sidique Khan, the man who blew up the Edgeware Road train. In an insight into the double life he led, it shows him giving a lesson to children on how to cope with bullies.
Khan was investigated by MI5 last year but agents from the UK’s domestic intelligence agency reportedly decided he was not a threat.
They had apparently checked him out in connection with a plot to blow up a London target, possibly a nightclub in Soho, with a fertiliser bomb.