Eight paintings commissioned under Geoff Hoon, the former Defence Secretary, to adorn the Ministry of Defence headquarters could be sold and the money given to Armed Forces charities.
Liam Fox, the Defence Secretary, has openly criticised Hoon's decision to commission £272,000 worth of modern artwork for the walls of Whitehall between 2004 and 2006 describing it as a "frivolous project".
He said it was particularly "out of touch" to spend funds on art while troops were suffering from equipment shortages in war zones and decrepit housing at home.
An MoD source said: "Selling the paintings and donating the money to Help the Heroes is something that we are exploring. We are looking into what we can do. The hope is that the pictures could be auctioned off for good causes."
It is not currently clear whether current government guidelines would allow such a sale of government property to take place with the proceeds of taxpayers money given away.
The source said Dr Fox and his department were "looking into" potential difficulties.
The amount spent on the paintings has led to considerable criticism in the past.
In 2004/05, MoD civil servants bought a set of paintings by Zil Hoque called Nimbus I, II, III, IV at a cost of £160,000 and a set of four paintings by Louise Cattrell - Eyrie, Aerial, Tempest and Keep - that cost pounds £72,000, all excluding VAT.
The following financial year, the department spent almost £53,000 simply on maintaining its art collection.
Gen Sir Mike Jackson, the former head of the Army, wrote in his memoirs that spending on modern art demonstrated the "cultural divide'' at the MoD.
The images were part of a wider £325 million refurbishment of the Ministry of Defence that began in 2004.
Last month Mr Hoon, the former MP for Ashfield, said he could not remember commissioning the paintings. "I doubt that I ordered the art. I certainly was not aware that I ordered it," he said.