More than 90 Conservative MPs have written to David Cameron urging him to give Parliament a national veto over current and future EU laws.
They urged him to hand the Commons the ability to block new EU legislation and repeal existing measures that threaten Britain's "national interests".
Downing Street said it was working on a new settlement with Brussels.
But Deputy Prime Minister Nick Clegg said Conservatives must "make up their minds" on whether to stay in the EU.
And Conservative Justice Secretary Chris Grayling suggested it would not be "viable" to allow any "one (national) parliament to veto European legislation".
The ideas proposed by the MPs were first put forward by the Commons European Scrutiny Committee last month.
In the letter, they said the move would enable the government to "recover control over our borders, to lift EU burdens on business, to regain control over energy policy and to disapply the EU Charter of Fundamental Rights".
According to the Sunday Telegraph, signatories to the letter, drafted by senior Tory Bernard Jenkin, included James Clappison, Conor Burns, John Baron, Anne Main and former defence minister Sir Gerald Howarth.
'Make reality'They told the prime minister: "Each time you have stood up for British interests in Brussels, you have achieved a great deal.
"Building on your achievements, we would urge you to back the European Scrutiny Committee proposal and make the idea of a national veto over current and future EU laws a reality."
Mr Cameron has promised to renegotiate the terms of Britain's membership of the European Union and hold a referendum in 2017, but many Conservative MPs want the prime minister to give more detail about exactly what changes he would like to see.
Responding to the letter, a Number 10 spokesman said: "The prime minister set out his approach in his Bloomberg speech (in January 2013).
"He has already won his battle over European bank bailouts, cut the EU budget for the first time and launched a landmark debate on the future of freedom of movement.
"The prime minister is also the only one of the three main party leaders committed to giving the British people an in-out referendum on membership of a reformed EU."
The spokesman said Number 10 would study the idea closely but added that the single market would not work if "individual national parliaments regularly and unilaterally overturned EU laws".
Mr Clegg, the Liberal Democrat leader, told BBC One's Andrew Marr Show: "Conservative MPs now need to make up their minds. If they want full exit from the European Union, they should be free to argue it, but they should be candid."
He added: "You can't safeguard a single market if you say the rest of Europe has to play by the rules but we can't... You are either in or out."
Mr Clegg, whose party is strongly supportive of the UK remaining in the EU, also said: "We already have a procedure where parliaments can club together and national parliaments can say 'We don't like this particular proposal' and can hold up the red card."
Mr Grayling told BBC One's Sunday Politics: "I don't think it's realistic (that)... any one parliament can veto laws across the European Union."
He added: "We have got to have a system that's viable. I'm not convinced we can have a system where one parliament can veto European legislation."
Meanwhile, a survey has suggested that more people think Britain should stay in the EU but try to reduce its powers (38%) than want to leave (28%).
The poll of more than 2,000 people for think tank British Future also found that people thought migrants who came to the UK from other European countries should learn English (69%), get a job and pay taxes (64%) and not claim benefits (48%).
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