Attorney General Jeremy Wright has promised action "shortly" in the case on the National Fund, the 90-year-old charity with £475m of assets, which has never spent a penny on any charitable activity.
The charity was set up in 1928 to pay off the national debt, but Jeremy Wright QC said there was "no realistic prospect" of the fund ever meeting its objectives.
He said he had been "working closely with the trustee of the fund and the Charity Commission to resolve this issue", and said he would shortly be able to offer an update on "actions I will be taking regarding the future of the fund".
Wright's was responding to a question from Steve Reed, Labour MP for Croydon and the shadow minister for civil society.
Reed took up the matter after Civil Society News revealed that the Attorney General's Office had promised to find a resolution to the fund in 2012, but had still not made an announcement of the next steps in 2018.
The issue has attracted cross-party interest. Sir David Amess, Conservative MP for Southend West, called last month for a debate on the future of the fund.