The EU has decided to suspend most sanctions against Burma for a year while it assesses the country's progress towards democracy, according to the Independent.
The paper says the decision has already been agreed in principle but is to be formally taken by foreign ministers on Monday in Luxembourg.
BBC News reports senior sources as saying a "big chunk" of the current sanctions will be suspended with only the arms embargo remaining in place.
The broadcaster says the travel and asset freeze for many government officials will end and aid and development money would be allowed into the country along with investment into key parts of the economy.
According to the Telegraph, ministers are expected to agree to include the possibility of reviewing the decision in six months.
A diplomat said the 12-month suspension period "gives us time to assess the sustainability of reform".