The BBC licence fee is set to be frozen for up to two years according to reports.
Under plans being considered by ministers, the licence fee could be fixed at £159.
Aimed at easing the cost of living crisis, the BBC and Government are said to be negotiating the fee between 2022 and 2027.
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A decision is expected later this month, reports the Telegraph.
The licence fee model has come under fire recently amidst criticism of the broadcaster over equal pay, diversity and competition from streaming services such as Netflix, as well as the abolition of free TV licences for all over-75s.
Last year the BBC's new director-general Tim Davie said the licence fee model was the best way of funding the BBC.
He told an Ofcom conference: "I haven't seen a model that beats the current one at the moment, a universally funded licence fee.
"The vast majority of households think it offers very good value. That's what the BBC needs to focus on. Under my leadership, we'll focus on that."
Earlier this year, the Government said it would not go ahead with plans to decriminalise non-payment of the licence fee but will keep the issue under "active consideration".
Culture Secretary Oliver Dowden said switching to a civil enforcement system risked being seen as an "invitation" to evade the fee and could ultimately reward those who declined to pay.
But he said the Government remained concerned that a criminal sanction was "disproportionate and unfair" in the current public service broadcasting landscape.
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