Lebanon and Israel are close to reaching a deal over the Karish gas fields, according to the Jerusalem Post, noting the two could sign an agreement to settle the dispute as early as next month.
A report in Russian media from last week claimed that an agreement is very close, and that it will be announced by US mediator Amos Hochstein.
Israel's Defence Minister Benny Gantz threatened Lebanon with war over the gas reserves on Monday, days after Hezbollah leader Hassan Nasrallah warned of an "escalation" if Lebanon was "not given what it asked for."
The two countries have had a long-standing dispute over their maritime territories in the Mediterranean Sea that is thought to have a large natural gas reservoir called the Karish gas field. They have never settled on a maritime border.
Lebanon claims the Karish gas field is in disputed territory, whereas Israel says it lies within its internationally-recognised economic waters.
Israel is reportedly scheduled to start extracting gas from the area as early as September.
Political instability in both countries, however, could hold up the deal further. Israel has struggled to elect a functioning government over the past few years, with a fifth election in two years planned for November 2022.
Lebanon meanwhile is mired in an economic, political and financial crisis amid a plunging economy that has seen millions pushed into poverty.