Brussels will allow data to continue to flow from the EU to the UK after deciding that Britain had an adequate level of protection for personal information.
A draft decision by the European Commission is expected to be approved this week, the Financial Times reported on Monday.
The move will help with features of EU-UK law enforcement cooperation and will be welcomed by businesses that transfer personal customer information.
Since the Brexit transition period ended, relations have been strained between the UK and the EU by new rules for the movement of goods across the Northern Irish border.
The decision by Brussels looks set to benefit both the EU and the UK, enabling data transfers on criminal matters such as search warrants.
It would be under review by the commission and is open to legal challenges at the European Court of Justice.
The move will face scrutiny by the European Data Protection Board before it can be passed, although the body does not have the authority to block the decision.
Arrangements will be reassessed every four years to check that UK rules do not compromise the privacy of EU citizens, according to the draft decision seen by the Financial Times.
Britain already allows data transfer to the EU, but a full adoption of the commission’s decision must take place before 30 June.