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
Actor Pierce Brosnan was stopped by airport security after trying to board a plane with a knife.
Children are risking their lives by playing "chicken" on motorways during the school summer holidays, police say.
Dramatic footage has shown the moment a policeman pulled a man to safety just seconds a train smashed into his car.