An "emergency brake" on immigration, which would be pulled when the number of jobseekers from particular EU countries reaches a certain level, is being considered by the Prime Minister.
David Cameron is under pressure to take action after UKIP's surge in the polls and immigration will be a key issue at the election.
The Prime Minister has so far announced benefit curbs for those from new EU countries but now Number 10 is understood to be drawing up tougher policy to take to the EU.
Mr Cameron's demands for tougher rules on immigration will form part of his attempt to renegotiate the UK's deal with the EU.
There are suggestions Mr Cameron could make an announcement on new measures ahead of the Rochester and Strood by-election on 20 November in an attempt to get a jump on Nigel Farage's party.
However, there is also speculation he could hold off to just before Christmas so he has a sweetener to offer should the Conservatives lose the by-election to Mark Reckless, who defected to UKIP in September.
Mr Cameron raised the prospect of new tough measures in his conference speech. He said he would put changes "will be at the very heart of my renegotiation strategy for Europe".
He added: "Britain, I know you want this sorted so I will go to Brussels, I will not take no for an answer and when it comes to free movement - I will get what Britain needs."
It comes after London Mayor Boris Johnson, who will be making his bid to return to Westminster as an MP at the General Election, called for the introduction of a quota system for EU migrants.
Writing in The Daily Telegraph on Monday, Mr Johnson, a potential Tory party leadership contender, said: "The voters aren't fools. They have spotted the incoherence - and what they object to is not so much the immigrants themselves; what makes people angry is the sense that the whole thing is out of control.
"Britain is now the America of the EU; the place people want to come; the magnet for the hordes at Calais.
"It is only reasonable for us to have some kind of further protections - involving points or even quotas, agreed with business - so we can manage that pressure."
Asked about the plans, Deputy Prime Minister Nick Clegg accused the Conservatives of "running after UKIP".
Other senior Tories are known to favour a points entry system like the one used in Australia, and the one suggested should be UK policy by UKIP.
At Prime Minister's Questions on Wednesday, Mr Cameron suggested immigration would be one of his "red lines" when negotiating a new deal with the European Union.
A Number 10 spokesman said: "Immigration is something that needs to be addressed as part of EU reform."
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