Tata Steel offered to make a one-off payment of £520m into its UK pension scheme, according to reports.
In a bid to break from its large UK pension deficit, the steelmaker has put the offer to the trustees of the British Steel Pension Scheme, which has 130,000 members.
India's Tata Steel is in negotiations with Thyssenkrupp over the merger of their European steel units, but Tata's UK operations are causing a headache.
The German firm will only go ahead with the merger if the scheme can be left behind.
The proposed payment will help Tata Steel detach itself from the pension scheme with the approval of the regulator.
Tata Steel declined to comment on the reports.