Parents will receive up to £1,200 a year towards their childcare costs from 2015, according to reports.
The pledge will reportedly only apply to families in which both parents work and earn less than £150,000 a year.
The payment is part of a £1.4 billion investment in childcare and will be partly funded by the abolition of childcare vouchers.
It has taken four months for a deal to be reached after the Government pledged to help with childcare costs in January.
More top news
Weather will be settled with with some sunshine and feeling cold
A bus carrying school children has crashed in Italy killing at least 16 people.
Tens of thousands of people are expected to join demonstrations on Saturday in cities around the world in support of women's rights.