Communities & Local Government (CLG) is due to announce the winner of the contract this week.
CLG is understood to want to expand the awards to places that are not open to the public, such as registered social landlord green spaces.
A CLG representative said: "The Green Flag Award contract is under tender and the new contractor will be announced (soon).
"The success of the Green Flag Awards continues to grow, with the number of high quality green spaces increasing to 538 in 2007/08 in 196 local authority areas.
"We are set to achieve the target of 60 per cent of all green spaces meeting the award standard in 2008."