A report in Folha de Sao Paulo, which cited a source close to the takeover talks, said Vale and Glencore had probably agreed to Glencore keeping the marketing rights for the combined firm’s production over five years, with the exception of iron ore which Vale would retain.

Earlier this month, Vale reportedly threatened to abandon negotiations with Xstrata after Glencore demanded a 10-year extension of its agreements to sell commodities that Xstrata produces.

However it was reported that these terms were not acceptable to Vale, which was looking at a five-year extension to the marketing rights.

Vale’s chief executive Roger Agnelli said earlier this month that talks had been difficult since three parties were involved in the proposal, namely Vale, Xstrata and Glencore.

“We have limits, we have reached our limits,” he said. “The problem is whether Glencore agrees to this [proposal] or not. It depends on Glencore’s position.”

Vale’s bid for Xstrata may be worth around $US90 billion.