The high street bank has been cooperating with investigations into alleged attempts by traders to fiddle the interest rate benchmark.
Barclays was the first to be fined, paying £290m two years ago. RBS followed with a £390m fine to US and UK authorities in early 2013.
Lloyds’ settlement is expected to be announced in the coming weeks, the Wall Street Journal reported.
“As we have disclosed, Lloyds Banking Group continues to receive requests for information from a number of government agencies with regard to their investigations into interbank offered rates (including Libor),” said a spokesperson. “We are co-operating with those investigations.”
The Financial Conduct Authority declined to comment.