Sir Philip Green could be days away from signing a £350m deal with The Pensions Regulator to recover BHS' pension scheme deficit.

Almost eight months after the retail tycoon told MPs that he would "sort" the collapsed chain's pension shortfall, Sky News has learnt that an agreement may be reached this week.

While a oncoming deal is anticipated, sources close to the talks said that there were still "moving parts" and delays could be met in the process.

An individual close to the situation said it is likely that the resolution will involve lump sum payments to thousands of BHS members with smaller pots, as well as the creation of a new scheme to make continued payments to remaining members.

Nonetheless, a possible arrangement between the former owner and TPR could mean that BHS pensioners will still face cuts to their benefits, however settlements would have to be on better terms that what they would receive from the Pension Protection Fund.

Any decision is likely to be examined by the Work and Pensions Select Committee, following a series of debates scrutinising Green and demanding that he takes action to recover the pension shortfall.

Earlier last year, TPR issued a warning notice to Green demanding a sum of more than £350m to plug BHS' pensions black hole.

A spokesperson for TPR said: " We remain in discussion with Sir Philip's advisers. Any settlement offer we accept has to be robust enough to stand the test of time and mean that members and the PPF are not left in a worse position further down the road."

The most recent valuation of BHS' pension deficit was £571m but is expected to have risen considerably as a result of extremely low interest rates lowering gilt yields.

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