The security firm, G4S, could lose 100 million pound over the messed up contract, which saw it, fail to provide enough guards for the London Olympics last year.
Bosses are in the final stages of negotiations with Games organisers LOCOG and the two sides have been in talks over a final settlement for the 240 million pound security contract, the Daily Star reports.
G4S failed to provide all of its 10,400 contracted guards, meaning the Government had to bring in military personnel instead.
Two directors, David Taylor-Smith and Ian Horseman Sewell, resigned in the wake of an independent review into the shambles, but chief executive Nick Buckles stayed in post, the paper said.
G4S, the world's biggest private security company with 650,000 staff, has also lost a Ministry of Defence contract to examine alleged war crimes by Brit troops in Iraq. (ANI)