"Can confirm," the source said when asked about reports of the House and Senate reaching a deal.
A draft text of the measure is expected to be rolled out later on Sunday and votes should take place in the coming week, media reported.
This measure will give US lawmakers time to continue work on a bipartisan spending package that provides some $1.6 trillion in spending for the next fiscal year, with $886 billion of it going to defense.
In November, US Congress passed a so-called "laddered" government funding measure, which temporarily funded separate portions of the government through January 19 and February 2.
In order to avoid a partial or total government shutdown, lawmakers must pass appropriations bills on areas including agriculture and transportation by the first date, and on areas including defense, homeland security and foreign operations by the latter date.