David Cameron has said action is needed to curb EU immigration and pledged to have "one last go" at negotiating a better deal for the UK in Europe.
Speaking in Kent, where there is a by-election next month, he said: "We need further action to make sure we have more effective control of migration."
Last week the Conservatives lost a by-election to the UK Independence Party, which wants the UK to leave the EU.
Lib Dem Nick Clegg accused the Tories of "blind panic" at UKIP's rise.
Mr Clegg, deputy PM, told his LBC phone-in: "No Conservative has ever put any proposal to me."
UKIP's migration spokesman Steven Woolfe, said Mr Cameron was "running scared" saying: "This is hot air from a cold, hard, calculating politician whose interests are saving his own skin and not the jobs of the British people.
"With this latest PR trick he is seeking to pull the wool over our eyes for he knows in advance that the EU will never restrict free movement of European migrants."
According to The Times the prime minister has promised backbench Conservative MPs a "game changing" announcement on immigration, which would "almost certainly" come before Christmas.
Some Conservative MPs are understood to be pushing for the announcement to be made before the Rochester and Strood by-election, triggered by the defection of Conservative MP Mark Reckless to UKIP, on 20 November, at which immigration is expected to be a major factor.
'Complete flap'Among the "radical" options being considered by the government is an "emergency brake" on immigration from some EU countries, according to the Times.
The Sun newspaper goes further, saying Mr Cameron will "demand the right to limit European immigration" as the "price of staying in the EU".
But it says details of the proposed restrictions - which could involve caps on arrivals from certain countries or an "Australian-style" points system operating within the EU - have yet to be finalised.
At the moment the European Union has freedom of movement rules, which means everyone can move to live - and in nearly all cases work - in any member state.
Asked about the newspaper reports on his weekly LBC radio phone-in, Mr Clegg said: "The Conservative Party is in such a blind panic, a complete flap, about UKIP that every day I wake up to new headlines.
"No Conservative has ever put any proposal to me. They have never breathed a word of it government. Who knows? Maybe the press briefing they issue tomorrow will be different."
The deputy prime minister added: "I think the Conservative Party have got a fundamental problem. They are running after UKIP in a complete panic."
'Increased numbers'Mr Cameron is under pressure from Conservative MPs to set out details of his strategy for renegotiating the relationship with Brussels ahead of a promised 2017 in/out referendum if the party remains in power after next year's general election.
In his speech to the Conservative Party conference, Mr Cameron said: "Numbers that have increased faster than we in this country wanted… at a level that was too much for our communities, for our labour markets. All of this has to change - and it will be at the very heart of my renegotiation strategy for Europe.
"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."
But Mr Cameron has declined to state whether he would be prepared to back a British exit if he does not get the concessions he wants, insisting he is confident of success in the negotiations.
It is unclear whether it would be possible for the EU's freedom of movement rules, seen as a fundamental part of the union, to be changed as Mr Cameron hopes.
European Commission spokeswoman Chantal Hughes said: "Free movement of workers is a fundamental principle in the EU. It's enshrined in the treaty. It constitutes also an essential part of the single market.
"All we've seen are vague reports... were we to receive such details, concrete measures, from the UK government, of course we would assess them to ensure there full compliance with European rules."
She added that a series of bilateral deals between the UK and other EU members could contravene free of movement and "would obviously not be acceptable".
Mats Persson, director of Open Europe, a think tank that calls for reform of the EU, told that any attempt to secure "some sort of mechanism" that would allow Britain to curb its number of immigrants from the EU would be "very, very difficult" to achieve.
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