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
IS is now attracting women and whole families as well as young men - but will any return to carry out another 7/7?
Rain will be heavy across Scotland, parts of northern England and Wales tonight - rumbles of thunder are possible waking some of us up.
A report out tomorrow shows energy bills have been 5% higher than they should have been - costing Brits as much as £1.2 billion a year.