Officials at the US Department of Justice (DoJ) opened negotiations with Huawei CFO Meng Wanzhou’s legal team regarding a potential deal which would allow her to avoid prosecution for allegations of fraud and sanctions violations and end a two-year battle with authorities, The Wall Street Journal (WSJ) reported.

The newspaper said the parties are working to agree terms for what is known as a deferred prosecution agreement, which typically involve an admission of guilt and the implementation of remedial measures in exchange for dropping prosecution in court.

While the deal would allow Meng to return to China after two years fighting a US extradition bid, WSJ noted she is hesitant to give up her claims of innocence.

Deferred prosecution agreements are typically offered to companies rather than individuals, and charges may be dropped altogether after a set period of time if the terms of the deal are not violated: Ericsson struck a deal with the DoJ in 2019 to end an investigation into corruption claims.

Meng was arrested in Canada in December 2018 on suspicion of bank fraud and violating US trade sanctions on Iran.

Huawei and Meng vehemently deny any wrongdoing.