The Olympic sprinter could pay the family around 2 million rand ($209,000) to settle the civil action before the murder trial begins on March 3, South African’s News24 reports.
Steenkamp’s parents are suing Pistorius for loss of income and emotional distress after he allegedly murdered the model in the early hours of Valentine’s Day last year.
The pair operate a pub outside Port Elizabeth and are believed to have been under financial strain since their daughter’s death.
They reportedly purchased the pub with money from interviews after the murder.
According to News24, a well-placed source says the family are demanding between 2m and 3m rand compensation.
The Paralympic sprinter was charged with his girlfriend’s murder but maintains his innocence.
Pistorius claims he shot Steenkamp in self-defence after mistaking her for an intruder in the early hours of the morning.
The 27-year-old faces a life sentence with a minimum 25 years in prison if convicted.
Author: Matthew Henry, Approving editor: Simon Black