Lululemon Athletica (LULU) is close to a settlement with founder Chip Wilson that would give him board seats to end strife between the two parties, Reuters reported Tuesday, citing unnamed sources familiar with the matter.

Under a deal being discussed, the company would name two of Wilson's nominees to the board with a commitment to find another member both parties agreed to later, the report said.

The proposed deal would also grant Wilson regular access to incoming Lululemon Chief Executive Heidi O'Neill, the report said.

Wilson, who owns 8.6% of the company, would in turn promise to end its proxy fight against Lululemon and publicly or privately disparaging the company for two years, while his stake would be limited to 10%, the report said.

Lululemon did not immediately reply to MT Newswires' request for comment. Wilson could not be reached.

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