The Los Angeles Times reported the breakthrough was reached by negotiators in Havana.
Land reform is one of six points that the two sides must resolve if they are to end the decades-long hostilities, the newspaper said.
In a joint announcement, the two sides said they had agreed on "integrated rural reform," which would include the creation of a "land fund" that would be comprised of millions of illegally or underused acres that would eventual be redistributed to displaced people and the poor.
Former Vice President Humberto de la Calle, the government's lead negotiator, noted there are still five unresolved points and any final package would have to be approved in a national referendum.
Still, he said, "Now we have a real opportunity to reach peace through negotiations after 50 years of armed conflict."
The peace talks are to resume June 11 in Cuba. The next topic will be how to provide FARC political representation and whether the rebels will be granted blanket immunity from war crimes, the Times said.
Also yet to be decided are the issues of FARC involvement in drug trafficking, reparation for victims, the logistics of ending the conflict and implementation of a final agreement, the newspaper noted.