Axios and the New York Times both cited unnamed sources as saying that Trump plans to include Flynn in a series of pardons he will issue in the final days of his presidency.
Trump fired Flynn just 22 days into his administration.
But the president has always claimed the investigation was a political "witch hunt" and that Flynn, a former army general and head of the Military Intelligence Agency, was a "good man."
In a highly unusual move, the Justice Department withdrew its case against Flynn in May this year, saying the alleged lies to the FBI were not significant and handing Trump a major political victory.
But a federal judge has demanded a further judicial review of the matter.
A pardon from Trump would take the matter out of the courts.