The US Department of Justice is discussing a possible deal with Huawei’s finance chief Meng Wanzhou, according to reports.
Ms Meng faces US charges over alleged violations of sanctions on Iran.
This week marks two years since Ms Meng was arrested on a US warrant while she was changing planes in Vancouver.
Since then, she has been fighting extradition to the US to face trial.
She is currently on bail and not allowed to leave Vancouver, where she has a home.
Negotiations between Ms Meng’s attorneys and the US Justice Department picked up after last month’s US presidential election.
Ms Meng does not think she did anything wrong and so is reportedly reluctant to make admissions that she does not think are true.
Huawei and Meng are accused of conspiring to defraud HSBC and other banks by misrepresenting the company’s relationship with Skycom, a suspected front company that operated in Iran.
US authorities allege Huawei used Skycom to obtain embargoed US goods, technology and services in Iran.
Ms Meng, who is the daughter of Huawei’s founder Ren Zhengfei, has long claimed she is innocent, arguing that her arrest was politically motivated.
The Trump administration has targeted Huawei, arguing that its equipment could be used by Beijing to spy, an allegation that the company has denied repeatedly.
The US now requires any company that sells US-made technology to Huawei to first obtain a licence.
The export restrictions have led to a shortage of vital components for Huawei, and prompted it to sell off its youth-oriented Honor handset brand.
Ms Meng’s arrest has created diplomatic friction between China and Canada too.
Canadian Prime Minister Justin Trudeau has condemned the move, arguing that the two men are being used as tools in a diplomatic struggle between the US and China.