Three people with the knowledge of matter were quoted by The Financial Times as saying that the lender is expected to announce the settlement before declaring its first-half results on 31 July.
The settlement is expected to include penalties paid to the UK Financial Conduct Authority (FCA), as well as the US Department of Justice (DoJ) and the Commodity Futures Trading Commission (CFTC).
Meanwhile, the bank confirmed that it is in late-stage settlement discussions with a number of agencies.
"The settlements remain to be agreed and LBG expects they will include the payment of penalties. LBG will update the market on these issues as appropriate."
Both FCA and CFTC refused to comment, while DoJ could not immediately be reached for comment on the report.
The 25% UK-taxpayer owned lender joins several other banks to settle allegations or pay fines for alleged rigging of Libor, and other benchmark rates.
Lloyds is one of the banks whose employees are alleged to have worked with brokers who were helping a former UBS and Citigroup trader, Tom Hayes, manipulate rates, according to people familiar with the investigation, as reported earlier by The Wall Street Journal.