Oasis split in 2009, when Noel, 47, walked out following a series of public spats.
The Gallaghers have reached a "gentleman's agreement" about reuniting, reported the Daily Mirror.
The rumoured revival of the band, which formed in Manchester in 1991, comes after the brothers appeared to have held peace talks following years of bitter feuding, with Liam recently posting a picture of himself online with a pass to one of Noel's solo gigs captioned, "Keeping it in the family."
"It's early days in terms of the details, but Noel and Liam, 42, are back on good terms and ready to give things another go. Nothing is signed but it's what you might call a gentleman's agreement between them.
Ultimately they're family and whatever has gone on before can be sorted out - they're very close beneath all the bluster," a source said.
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