The proposed new-build nuclear power station at Hinkley Point in Somerset has been recommended for approval by the European Commission (EC).
Since December, the EC has been investigating whether funding for the £16bn plant broke state aid rules.
Hinkley Point C would be the first new nuclear plant to be built in Britain since 1995. French firm EDF Energy is developer of the facility.
A spokesman for the EC said: “Our discussions with the UK authorities have led to an agreement.
“On this basis, vice-president Almunia will propose to the college of commissioners to take a positive decision in this case. In principle a decision should be taken within this mandate.”
A spokesman for EDF: “”Hinkley Point C is an important project which will deliver Europe-wide objectives, offering the prospect of reliable, secure and low-carbon electricity for many decades to come as well as boosting jobs and skills.”
The recommendation must now be approved by the commission’s College of Commissioners.
A final decision is expected in October.