The leaked list of quangos selected for abolition appears to confirm the plans by British Waterways to become a charity.
The leaked Cabinet Office list in last Friday's Daily Telegraph said of the organisation: "abolish as a non-departmental public body and mutualise (civil society model)".
British Waterways said in February that it wanted to become a charity by 2012. With an annual income of £223m, it would immediately become one of the UK’s largest voluntary organisations.
A British Waterways spokesman said: "We put forward radical proposals for a rethink of how the nation cares for its historic canals and rivers.
"We are confident that the Westminster government will take these proposals forward as a real example of big society in practice and anticipate an announcement as early as next month."
The Cabinet Office has ordered an investigation into the leak but refused to comment on its contents.