The talks with state and federal authorities have just begun, and the timing of a deal is unclear, a source told Reuters.
This comes after BNP Paribas was fined a record breaking $8.9bn (£5.2bn, €6.5bn) for breaking US trading sanctions with Sudan, Cuba and Iran.
Commerzbank is accused by US authorities of transferring money through its US operations on behalf of companies in Iran and Sudan and could pay at least $500m in penalties, according to the New York Times.
The newspaper said a deal could be struck as soon as this summer and could pave the way for an agreement with Deutsche Bank.
A spokeman for Deutsche Bank is reported as saying that it has “received requests for information from regulatory agencies concerning its historical processing of US dollar payment orders through US financial institutions for parties from countries subject to US embargo laws and as to whether such processing complied with US and state laws”.
To read more about how Europe’s biggest banks are facing estimated fines of $103.5bn from regulators around the world, click here.
