According to The Wall Street Journal, the details of talks are still being hammered out, however, Washington will remove the ban on selling US components and software to ZTE upon completion of the talks.
At the same time, the publication said that under the framework of the arrangements with the United States, ZTE will have to make significant changes in the company's management and possibly pay a fine.
READ MORE: Trump Likely Using Chinese Firm ZTE to Bargain for More Concessions From Beijing
On Monday, White House economic adviser Larry Kudlow said that Washington will continue the policy of harsh measures against ZTE.
Back in April, the Trump administration banned US firms from selling telecommunications equipment to the ZTE Corporation over suspicions that the Chinese company might have supplied equipment to Iran and North Korea. For its part, ZTE has called the decision unfair and vowed to protect its rights.