The Pensions Regulator and Sir Philip Green are said to be close to a deal to help plug the BHS pension schemes’ deficit with Green paying in more than £350m.
Sky News reports a deal is imminent and could be agreed later this week.
One source told Sky News the deal would likely involve lump sum payments to former BHS employees with smaller pension pots, while a new scheme will be set up to make ongoing payments to remaining members of the scheme.
In November The Pensions Regulator began enforcement action against the former BHS owner, as well as Dominic Chappell and Retail Acquistions which bought the now collapsed department store.
The Work and Pensions committee has called for TPR to have a “nuclear deterrent” to prevent companies from sidestepping the scheme liabilities.
A spokesman for Green declined to comment.
A spokesman for TPR says: “We remain in discussion with Sir Philip’s advisers.
“Any settlement offer we accept has to be robust enough to stand the test of time and mean that members and the Pension Protection Fund are not left in a worse position further down the road.”