The United States and China are nearing a deal that will remove an existing order banning American companies from supplying Chinese telecommunications firm ZTE Corp, reported Reuters and the Wall Street Journal, citing unnamed sources.
ZTE, in return, was asked to make significant changes to its management and board of directors.
The Wall Street Journal quoted people with knowledge of the matter as saying that the details "are still being hammered out."
The deal, if completed, would give ZTE a major reprieve, as the seven year ban announced in April on the company has threatened to put the company out of business.
However, the possible relaxation of the ban by the US side will have to pass U.S. national security reviews, it added.
Also on Monday, U.S. Treasury Secretary Steven Mnuchin told CNBC that "the intent was not to put the company (ZTE) out of business."
U.S. Commerce Secretary Wilbur Ross, who oversees the ZTE case, was reportedly scheduled to go to Beijing next week.
(with input from Xinhua)