A trial of the controversial cards, which if rolled out across the country would constitute the UK's largest security printing job outside banknote printing, was planned for all airside workers at airports across the UK.
However, Jacqui Smith is expected to announce in a keynote speech this afternoon that only workers at London City and Manchester Airport will take part in the trial.
The news will come as a blow to security printer 3M SPSL, which was awarded the contract to print the cards for the initial trial.
The £5bn scheme has been beset by protests, delays and confusion over the proposed roll-out.
Last month, ID Data, one of the front-runners for production of the cards went into administration.
Protests against the trial reached their zenith over the summer with the air travel industry branding the scheme as "totalitarian".
Government set to announce backdown over ID cards trial
The Government will limit its ID cards trial to just two airports, the Home Secretary is expected to announce today, giving in to mounting pressure from unions and the public.
