The embattled Labour leader has privately launched a review of the honours arrangements, with proposals to radically overhaul the system if he comes into power.
The awards this summer would be the first occasion when Mr Corbyn would have to chance to recommend colleagues for a knighthood, CBE or other honours.
When a senior advisor to Mr Corbyn was asked whether the staunch republican would do so, they replied: “That is an open question”.
The Government was accused of turning the honours system into an “old boys club” after Lynton Crosby, the political strategist who ran the Conservative’s 2015 election campaign was awarded a knighthood.
It also came under criticism for awarding a damehood to Lin Homer, the chief executive of HMRC and formerly the first chief executive of the UK Border Agency.
Commons select committees have criticised Homer’s performance in both roles.
Last night, Labour sources said the party were reviewing the current system which is decided by the committee chaired by a senior civil servant – even though members of the public can nominate someone for an award.
Mr Corbyn’s close colleague’s said they would be “amazed” if he did not explore cutting the time-honoured Order of the British Empire title of awards because he believes schoolchildren should be taught how people across the world suffered due to the spread of the Empire.
It is thought the lifelong republican, who controversially refused to kneel for the Queen when he was sworn in to the Privy Council, would want the world distance it from the Monarchy.
An ally of Mr Corbyn said: “The entire honours system has to be reviewed.
“We should scrap Order of the British Empire and replace it with Order of Excellence or something similar.
“Referring to Empire is outdated and backward-looking.”
Mr Corbyn’s spokesman has refused to comment. -SE