Intel and the Federal Trade Commission have reached a tentative settlement agreement that would end the FTC's antitrust investigation, according to a report.

Reuters reported Monday that the proposed agreement - which could be altered or completely disintegrate - would merely extend the conditions that Intel has already agreed to with AMD for microprocessors to graphics chips, the wire reported.

"Intel's deal with the U.S. Federal Trade Commission imposed no monetary penalties, but it will require the chip maker to extend changes under its November settlement with Advanced Micro Devices Inc to graphics chips, according to a source close to the agency."

The deal would also regulate Intel's use of volume discounts for both central processing unit and graphics chips, Reuters said.

In June, both Intel and the FTC filed motions to suspend a trial with an FTC administrative law judge while a settlement could be hammered out.

In November, AMD and Intel reached an agreement that ended litigation between the two companies, resulting in a $1.25 billion settlement payout to AMD. At the time, Intel chief executive Paul Otellini had made it clear that it was in the best interests of Intel to agree to a settlement, if only to avoid the costs in time and effort to fight. It's possible that Intel's rationale is the same.

"The AMD antitrust case has been massive, and promised to become even more so as the date of trial became closer," Otellini said at the time.

Specifically, the AMD-Intel agreement forbade Intel to:

Offer inducements to customers in exchange for their agreement to buy all of their microprocessor needs from Intel, whether on a geographic, market segment, or any other basis;

Offer inducements to customers in exchange for their agreement to limit or delay their purchase of microprocessors from AMD, whether on a geographic, market segment, or any other basis;

Offer inducements to customers in exchange for their agreement to limit their engagement with AMD or their promotion or distribution of products containing AMD microprocessors, whether on a geographic, channel, market segment, or any other basis;

Offer inducements to customers in exchange for their agreement to abstain from or delay their participation in AMD product launches, announcements, advertising, or other promotional activities:

Offer inducements to customers or others to delay or forebear in the development or release of computer systems or platforms containing AMD microprocessors, whether on a geographic, market segment, or any other basis;

Offer inducements to retailers or distributors to limit or delay their purchase or distribution of computer systems or platforms containing AMD microprocessors, whether on a geographic, market segment, or any other basis;

Withhold any benefit or threatening retaliation against anyone for their refusal to enter into a prohibited arrangement such as the ones listed above.