In July addressing the four areas which were of concern, about the alleged anti-competitive nature of its search business.
A spokesman for the European Commission told Media Week: "The Commission considers Google's proposals as a good basis for further talks and has reached a good level of understanding with Google. There should soon be discussions at technical level. We hope this process will lead to remedies addressing our concerns."
According to Google has now agreed the outline of a settlement, but the deal is yet to be finalised.
A Google spokeswoman would not elaborate on this, saying in a statement, "We continue to work cooperatively with the Commission."
The European Commission launched a probe into Google in November 2010, following a number of complaints from competitors, such as formerly Microsoft-owned shopping site Ciao, which claimed it was abusing its search dominance by pushing its own services higher in search rankings.
In May this year, Joaquín Almunia, vice-president of the European Commission responsible for competition policy, gave Google an early July deadline to respond to concerns over four areas of its business practice or face formal charges.
Reaching a settlement may stave off what could be a lengthy legal battle with the EU and potential fine of up to 10% of Google's turnover.
Google is being investigated in the US by the Federal Trade Commission over similar issues.
In its latest financial results, as the UK's contribution grew 20% year on year to $1.2bn.
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