The United States has reportedly agreed to let a senior executive of Huawei Technologies return to China after being held in Canada for three years.
The Chinese telecom giant's Chief Financial Officer Meng Wanzhou was detained at Washington's request in 2018.
She was later indicted on charges including fraud. The case became a sticking point amid deteriorating bilateral ties with Beijing.
US newspaper The Wall Street Journal and Canadian public broadcaster CBC say the US Justice Department has struck a deal for Meng's return.
They say it requires her to admit to some wrongdoing in exchange for prosecutors deferring and dropping fraud charges.
Meng was released on bail, but has since been staying at her home in Vancouver under strict surveillance.
A Canadian court had been expected to set a date next month for handing down a ruling on whether she should be extradited to the United States.
The reports say two Canadians who were arrested in China immediately after Meng was detained could now be released.
However, the animosity between Washington and Beijing is unlikely to fade anytime soon. The administration of US President Joe Biden regards Huawei as a security threat, and is tightening regulations against the company.