Argentine President Cristina Fernandez de Kirchner signed legislation last year to seize 51 percent of YPF shares held by the Spanish energy company. Repsol threatened legal action.
A proposal from the Argentine government is meant to "normalize and strengthen" ties among Repsol and the Spanish and Mexican governments, The Wall Street Journal reported Monday.
"Repsol will submit the [terms of the agreement] to the consideration of its board of directors, which will evaluate the terms and conditions," the Spanish company said in a statement Monday.
Petroleos Mexicanos, the Mexican state-owned energy company, holds a minority stake Repsol.
Repsol's board of directors rejected a compensation offer made in June by the Argentine government.
That deal would have given Repsol drilling rights to Argentina's vast Vaca Muerta shale natural gas field and 47 percent ownership in a new company. Valued at $5 billion, the Spanish company said the June deal was deemed "unsatisfactory" by its board of directors,
The Journal said the new deal would give Repsol payment in "liquid assets" for its stake in YPF, the Spanish acronym for Treasury Petroleum Fields.
Repsol's board of directors is to consider the measure Wednesday.