According to a person familiar with the talks, Sheen and Warner Bros. were near an agreement but still at work on it Monday. The person was not authorized to comment publicly and spoke on condition of anonymity.
Calls to Sheen's attorney were not returned. In a statement, the studio said no deal had been reached and declined further comment.
Sheen filed a $100 million lawsuit for wrongful termination against Warner after his firing, which followed bitter public tirades directed at the studio and the show's executive producer.
A judge ordered arbitration in the case, with a status report set for December.
The Los Angeles Times reported that final touches are being put on a deal that would give Sheen about $25 million to settle out of his contract.
Sheen was the highest-paid actor in television, with a per-episode salary reported to be between $1.2 million to $2 million.
His clash with producers cut short last season for the CBS series that is the highest-rated comedy on U.S. television.
"Two and a Half Men" returned to the air Monday with Ashton Kutcher joining the cast as a new character. He plays an Internet billionaire who decides to buy the house that had been owned by Sheen's now-deceased character.
In a recent turnaround, Sheen has been making conciliatory gestures toward his former show.
Appearing at Sunday's Emmy Awards as a presenter, he addressed the "Two and a Half Men" cast and crew, saying, "I wish you nothing but the best for this upcoming season."
In an interview with Matt Lauer on "Today" last week, the actor known for his hard-partying life said he didn't know how to "put out the fire" when he was fired and began a manic round of media appearances talking about "tiger blood" and "winning."
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