Sources in Tokyo said ministers had offered Hitachi loans to construct the power station in Anglesey, North Wales.
According to Reuters a deal could be unveiled as early as next week.
It comes a fortnight after company execs met the Prime Minister.
A Business Department spokeswoman said: “We don’t recognise these reports. Discussions are commercially sensitive.”
Experts say Britain’s ageing nuclear reactors, which supply more than 20 per cent of our power, will go offline by 2025.
French firm EDF’s new nuclear plant at Hinkley Point, Somerset, is already behind schedule.
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