The deal is likely to include areas of trade facilitation, supply-chain work, and trade in agricultural products, the report added.
The talks are an attempt to improve economic relations between the US and Taiwan and will go beyond existing discussions under the Trade and Investment Framework Agreement between the two countries, the sources noted.
This comes after US Secretary of State Antony Blinken claimed Washington does not "support Taiwan independence," but will continue to expand its ties with Taipei militarily and diplomatically, as he accused China of "growing coercion."
During his first Asian tour this week, Joe Biden rolled out the Indo-Pacific Economic Framework, or IPEF, which Washington portrays as a tool to ensure safe and sustainable supply chains and to set the rules for the digital economy, investment and other important areas of cooperation. At the same time, some Indo-Pacific leaders see the new US initiative as an attempt to replace the existing Trans-Pacific Partnership (TPP), from which Washington withdrew during the presidency of Donald Trump.
The IPEF does not include China and is reportedly aimed at countering its growing influence in the global tech industry.
The Chinese Foreign Ministry recently urged the US to be careful in what it says and does regarding the Taiwan issue and informed Washington that Beijing will take strong action to protect its sovereignty and security interests.
Though officially claiming to stick to the One China principle, Washington has supported pro-independence forces in Taiwan and sold the island millions of dollars in weapons.