Deutsche Bank is set to be hit with a fine worth more than $1.5bn(£1.02bn) in what would be the biggest penalty imposed for manipulating Libor.
The German bank is in negotiations with agencies in the UK and US to settle the allegations in which a Deutsche Bank subsidiary could also plead guilty as part of a deal, the Financial Times reports.
The penalty would be the latest in a growing list of regulatory fines and clampdown imposed on the company.
The bank has already paid a €725m fine to the European Commission for rigging yen Libor and Euribor, the European equivalent of Libor. It is also under investigation for its part in manipulating foreign exchange rates.
UBS has so far been hit with the largest Libor penalty, following a $1.5bn by US, US and Swiss authorities in 2012.
Last August the FCA fined Deutsche Bank £4.7m for failing to report 29.4 million equity swap contracts. In January it emerged the bank has been placed under “enhanced supervision” by the regulator over governance concerns.