According to The Sun, senior security sources are now saying the 55-year-old is unlikely to be allowed to live in Britain again.
Immigration officials are said to be instructed to prevent Mr Abramovich – who owns a £125million mansion near Kensington Palace – from settling in the UK.
His case would be handled by the “special cases unit” of the Ministry of Interior.
It comes after Mr Abramovich was named by MPs on Tuesday as one of 35 oligarchs identified by Russian opposition leader Alexei Navalny as one of the ‘key factors’ in the government’s ‘kleptocracy’. President of the country Vladimir Putin.
He vehemently denies being close to the Kremlin or doing anything that would warrant sanctions being imposed on him — as Britain sought to impose sanctions on Russia amid growing tensions with Ukraine.
In 2018, Mr Abramovich became an Israeli citizen, allowing him to enter Britain for up to six months.
He used his Israeli passport last October to make a short trip to London.
However, a senior source told The Sun that any attempt by the oligarch to apply for a permanent visa would “almost certainly be rejected”.
Mr Abramovich has an estimated wealth of £8.4billion.
As well as his huge property portfolio, he also owns a series of superyachts, including the £450million Solaris, which has a missile detection system.
Mr Abramovich never had British citizenship and made his money selling assets bought from the state when the Soviet Union broke up.
He arrived at Chelsea in 2003 and transformed the team from outside challengers into a Premier League giant with the help of Jose Mourinho.
The bulk of Abramovich’s British wealth is in Evraz, a steel and mining giant listed on the London Stock Exchange.
In the Commons on Tuesday, Liberal Democrat MP Layla Moran read out a list that featured Mr Abramovich’s name alongside other oligarchs, including Arsenal investor Alisher Usmanov.
Foreign Secretary Liz Truss declined to say whether or not Mr Abramovich would face sanctions, but suggested others would.
“We have a long list of people complicit in the actions of the Russian leadership,” she said.
“If Russia refuses to withdraw its troops, we can continue to increase the pressure, targeting more banks, elites and important companies.
“It is about inflicting pain on Putin and degrading the Russian economic system over time, targeting people close to Putin. What we need to do is make it as painful as possible.