The United States and Iran have reached agreement on a memorandum of understanding to extend their ceasefire for 60 days but US President Donald Trump has yet to approve it, a source familiar with the matter says.
Details of the tentative agreement were first reported by the news outlet Axios.
A US official familiar with the matter said the plan envisions talks to be launched on Iran's nuclear program once the MOU is signed.
Trump's administration has several times said that a deal to still the fighting was close only to have Iran dispute or downplay the claims.
There was no immediate confirmation of the report which prompted oil prices to reverse course and trade lower.
Trump has repeatedly said the end of the war is close but told media at a cabinet meeting on Wednesday he was not yet satisfied by the negotiations and that the US was not discussing easing sanctions, an Iranian demand.
Mediator Pakistan said its foreign minister, Ishaq Dar, would meet US Secretary of State Marco Rubio in Washington DC on Friday, although the significance of his visit was unclear.
Israel and the US attacked Iran three months ago.
A ceasefire has been in place in the war since early April when Pakistan hosted peace talks.
However, initial negotiations ended without a breakthrough.
Trump is looking for an agreement that will reopen the Strait of Hormuz, through which about a fifth of all traded oil and natural gas once passed.
He also is seeking to get Iran to give up its stockpile of highly enriched uranium.
Iran wants economic sanctions to be lifted and frozen assets to be released to aid its shattered economy.
Iranian officials also insist that any deal must include an end to Israel's military operations in Lebanon against the Iranian-aligned militant group Hezbollah.
with DPA and AP
