SAC's overture to prosecutors is an attempt to strike a deal that would involve paying a fine of as much as $1 billion, according to the report, which cited anonymous sources.

The U.S. government charged the Stamford, Connecticut-based firm on July 25 with securities and wire fraud, saying SAC presided over a culture in which employees flouted the law and were encouraged to tap their personal networks for inside information about publicly traded companies.

Prosecutors simultaneously filed a related civil case against SAC, seeking forfeitures and money laundering penalties. Cohen was not charged as an individual, but earlier in July the U.S. Securities and Exchange Commission filed a civil administrative proceeding against him, accusing him of failing to supervise two one-time employees. Both of the employees have been charged with insider trading.

The Bloomberg report said Cohen is seeking to settle the charges against SAC and against himself.

Jonathan Gasthalter, a spokesman for SAC Capital, declined to comment. Julie Bolcer, a spokeswoman for U.S. Attorney Preet Bharara, also declined to comment.