European Union diplomats are said to have agreed to suspend sanctions on Burma for one year.
An unidentified official told AFP that the suspension would give the EU time to monitor political reform.
The agreement would still have to be formally approved by EU foreign ministers at a meeting on Monday.
The only sanctions to remain would be the embargo on arms.
The EU move comes on the heels of announcements by the US and Australia, easing their own sanctions on Burma in order to encourage democratic reforms in the country.