BP is set to receive a record fine of between $3bn and $5bn for the 2010 oil spill in the Gulf of Mexico, BBC News reported.
It will be the biggest criminal penalty in US history.
The settlement with the Department of Justice involves BP pleading guilty to criminal charges.
It is thought that up to four BP staff may be arrested.
Details of the settlement are expected to be confirmed by the Washington-based Department of Justice later, according to BBC News.