Hull City and former chairman Paul Duffen are reportedly keen to settle out of court.
According to The Times, the two parties' legal teams have held discussions this week to avoid the matter going to the High Court, which "might be undesirable for all concerned", says the report.
A separate report by The Telegraph says that City are seeking £300,000 from Duffen, as well as a repayment for his salary for days not spent at work.