According to Bloomberg, citing people familiar with the case, this could open the possibility of a potential settlement between the groups.
Should the FTC withdraw its case, it would open the parties to discuss a settlement, if Microsoft and Activision are able to convince the FTC’s commissioners to come to the table.
According to the report, an order to withdraw the trial could come as soon as later today.
On Wednesday, Microsoft and Activision Blizzard agreed to extend their merger agreement until October 18, 2023.
The move to extend the agreement came after their initial self-imposed deadline to complete the $69 billion deal expired on Tuesday.
However, the company has yet to seal the approval of the UK’s Competition and Markets Authority (CMA), which remains a major roadblock to the deal closing.
Last week the CMA extended the deadline for its final decision on the deal until August 29 so that it could consider a fresh proposal from Microsoft.
The Xbox maker is reportedly considering selling some of its UK cloud gaming rights in a bid to gain approval for the merger.