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A ban on players displaying poppies is expected to be lifted before international games in November.
Football's lawmakers, the International Football Association Board (IFAB), are expected to rubber-stamp the change next month following strong criticism from British associations.
It is understood FIFA sent out a draft proposal to its member nations with revised provisions that could see the poppy permitted if opposing teams and the competition organiser for the relevant match both accept its use in advance.
Last year, FIFA fined England, Scotland, Wales and Northern Ireland for their use of the poppy, after they ruled it to be a political symbol.
England and Scotland have previously displayed the poppy on a black armband, in a failed attempt to bypass regulations.
England intend to play Germany at Wembley in November, subject to qualifying results next month, and the German FA are believed to have raised no objections to the use of the poppy.
The Football Association has declined to comment until a change has been fully approved by IFAB.
Theresa May has previously called FIFA's stance "utterly outrageous".
The new wording of IFAB's law is set to tighten the definition of what is deemed a 'political' symbol and prohibits:
• Commemoration of any living or dead person
• Political parties or groups
• Discriminatory organisations
• Any group whose aims/actions would offend a notable number of people
• Any specific political act / event
