FIFA looks set to allow players from England, Scotland and Wales to wear poppies on armbands during next week's World Cup qualifiers, Press Association Sport has reported.
Such a decision, repeating a precedent set in 2011, would be a compromise on FIFA's usual ban on any commercial, political or religious messages on shirts.
England host Scotland at Wembley on Nov. 11, Armistice Day, while Wales play Serbia in Cardiff the following evening.
The English, Scottish and Welsh Football Associations have asked FIFA whether they would be punished if players wore poppies on armbands during their games.
Press Association Sport reported that all parties are keen to find a sensible solution.
England wore armbands with poppies on them when they played Spain on Nov. 12, 2011. Scotland also did so in Cyprus, as did Wales when they hosted Norway.
A spokesperson for the Royal British Legion, the charity that organises the Poppy Appeal in England, Northern Ireland and Wales, said: "We see no reason why the poppy should be banned from players' shirts as it is not a political symbol.
"However, we understand a compromise will be found in armbands with the poppy on so that England players will enter the competition knowing they have shown respect for our armed forces.
"We are working closely with the FA to ensure the commitment and sacrifice of our Armed Forces is recognised during the Armistice Day match at Wembley."
A statement from the FA said it wanted to "honour and remember the sacrifices made by those serving in the armed forces," adding that it had "led remembrance discussions with FIFA to allow the England team to show its support for the Poppy Appeal" during the game against Scotland.
A Scottish FA spokesperson told PA Sport: "We are in dialogue with our colleagues at the FA and with FIFA and are optimistic of an outcome that enables both teams and their respective fans to pay appropriate respect on Armistice Day."
A spokesperson for the FA of Wales gave a similar statement and added that the Welsh team would be observing the two-minute silence in training on Armistice Day.