Britain's Treasury and the Bank of England are joining forces to dismiss talk of early entry for sterling into the single currency.
They are warning that attempts to massage sterling lower to prepare it for entry would put the health of the economy at risk.
Chief adviser to the Treasury Mr Ed Balls and governor of the Bank of England Sir Eddie George have ruled such manoeuvring out.
Mr Balls said in a London lecture that Chancellor Mr Gordon Brown understands the problems caused by a high pound.
"Any short-term attempt to manipulate the exchange rate, overtly or covertly, would put both the inflation target and - as in the 1980s - wider stability at risk," he said.
"The government's objective for the exchange rate remains a stable and competitive pound in the medium term. But there is no short-term exchange rate target competing with the inflation target."
Mr George, in an interview on BBC News 24's Business Today, said the level of the pound was "a real obstacle to early entry into the euro".
He said sterling needed to be significantly lower than the present 3.15 to 3.20 German marks.
PA