Chris is awaiting trial for allegedly breaking the man's nose during an altercation in Washington D.C. last year.
If a settlement is reached, the criminal case would likely be dropped, reports TMZ, and prosecutors are apparently aware of negotiations.
According to the website, the two parties may have already reached an agreement, but if not it will be a matter of days before they do.
The singer is currently being held at the notorious Men's Central Jail in downtown Los Angeles.
He is being held in solitary confinement to protect him from other inmates, so he will spend his hours in the small space, which has a basic bed frame, a small sink and a filthy toilet.