Pakistan Army Chief Field Marshal Asim Munir reportedly conveyed the proposal to Iranian officials during his visit to Tehran on Tuesday. The sources, cited in the report, claimed the proposal had already received American approval and a positive response from Iran.
According to Al Araby Al Jadeed, the proposal attempts to address two major sticking points: Iran's demand for access to its frozen funds and Washington's concerns over Tehran's nuclear programme.
On the financial front, the mediators have proposed a partial concession involving interest accrued on $6 billion in Iranian funds frozen in Qatari banks.
The arrangement would provide Tehran with some financial relief without requiring the immediate release of the entire frozen amount.
On the nuclear issue, the report said Iran had agreed in principle to a secret, unannounced visit by the International Atomic Energy Agency (IAEA) to Iranian nuclear facilities.
US President Donald Trump has made it clear that he will not allow Iran to have nuclear weapons.
The proposed inspection is intended to address a key American demand concerning Iran's nuclear activities. The report described the arrangement as a middle-ground proposal.
However, neither Washington nor Tehran has publicly confirmed a final agreement on these terms.
Breakthrough expected this week
Al Araby Al Jadeed also reported that sources involved in the Qatari-Pakistani mediation expected a diplomatic breakthrough to be announced this week. Discussions were continuing to reduce differences and encourage mutual concessions that could prevent another round of fighting.
They also suggested that an immediate military escalation was unlikely, although tensions across the region remain high. The latest effort follows earlier attempts by Qatar and Pakistan to mediate between Washington and Tehran.
Brent crude prices fell nearly 3% after news of the proposed compromise emerged. Any diplomatic breakthrough could reduce concerns about further disruptions to energy supplies, particularly around the Strait of Hormuz, a critical route for global oil shipments.