The Bank of England is to consider using palm oil in the production of the new £20 note, following criticism of the use of animal fats in the plastic £5.
The new £20 note is due to be introduced by 2020, but the tender for production has been put on hold.
Vegans, Hindus and Seikhs have objected to the tallow used in plastic notes.
The Bank said it was now assessing whether palm oil or coconut oil should be used instead.
The existing £5 plastic note, and the new £10 note, due out in September, will continue to use trace amounts of animal fat.
The Bank has said it is not practical to change the way such notes are made.