Dodd, chairman of the Senate Banking Committee said last week months discussions with the top Republican on the committee, Richard Shelby of Alabama, had reached a dead end. Dodd said he had instructed his staff to draft a bill without support from Republicans, The New York Times reported.
Democrats and Republicans are largely divided on the issue of creating a consumer protection agency for financial products, such as credit cards and mortgages, one of President Barack Obama's key proposals.
Corker had previously been working on a proposal to grant the government broad powers to wind down any company in jeopardy if the problem threatens the economy or the financial system.
In a meeting this week Corker agreed to negotiate on the consumer protection agency "given the importance of these issues," Dodd said.