Rolls-Royce could offer airline Qantas discounts on future sales after an engine blow-out forced an emergency landing.
The aerospace giant is in discussions with the Australian airline after it filed an intention to sue Rolls following the incident, the Sunday Times said.
A Qantas super-jumbo Airbus was forced to land in Singapore in November after part of a Trent 900 blew up in mid-air.
Both firms are understood to want to avoid a court hearing.
Instead, Rolls could offer Qantas money off servicing or future engine sales.
Rolls-Royce employs 1,000 at two sites in Barnoldswick where fan blades for Trent engines are manufactured.
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