But after a meeting with the leaders of the two main opposition parties there appeared to have been little movement on either side, with the government insisting on house arrests and that it would not allow the use of phone taps in court.
"I confirmed ... that the essence of that regime would be a regime of control orders strongly supported by the police and by the security services," Home Secretary Charles Clarke told reporters, adding: "we will not allow intercepts to be used."
Michael Howard, leader of the opposition Conservative Party, said simply he had made his points and heard Blair's but declined further comment, while Liberal Democrat leader Charles Kennedy hinted at some movement but did not elaborate.
A climbdown over the plans could prove embarrassing for Blair just weeks ahead of an expected May election although Blair's spokesman said this week "extreme measures" were necessary to face the threat from terrorism.
Opponents say plans for house arrest without trial are a breach of human rights.
"The primary principle at the centre of all this is whether or not an individual's liberty can be decided by a politician acting alone without reference to the due judicial process," Kennedy told BBC Radio on earlier Friday.
"That, I think, is an essential hallmark of British democracy."
The Conservatives and Liberal Democrats also want the government to legislate to permit the use of intercept or phone-tap evidence in court.
Ministers oppose the move, saying it will not lead to more convictions and will put the security services at risk.
Britain's anti-terrorism laws have been in turmoil since last December when the country's highest court said the current policy of indefinitely detaining foreign suspects without trial was illegal. The hastily drawn-up plans for house arrest were announced in January as a response to that ruling.