Volkswagen engineers want to use a catalytic converter that could be fitted to around 430,000 cars in the United States as a fix for vehicles capable of cheating emissions tests.
The converter would be fitted to cars with the first generation of the EA 189 diesel engine, German daily Bild am Sonntag reported on Sunday.
Sources at Reuters say the new catalytic converter proposed by VW would be made almost entirely out of new materials.
Volkswagen has struggled to agree with US authorities on how to fix vehicles fitted with the emissions test cheating devices.
In order to move forward with its proposal, the company must first gain approval from the US Environmental Protection Authority.
Volkswagen CEO Matthias Mueller will meet with EPA officials on Wednesday in Washington.
Volkswagen has declined to comment on the report which was provided by an anonymous source.