The BBC says it is expected that banks will agree to lend about £190bn to businesses this year and to reveal more about the salaries of top earners.
But it is not clear how lending will be monitored or if the agreement will actually be binding.
Bank bosses were reportedly "livid" after the government increased a levy on banks on Tuesday.
Project Merlin is also expected to include support for the government's so-called Big Society Bank and David Cameron has already told the House that his government would be taking £200m from the banks that would go into the voluntary sector.
For full details, reaction and analysis log back on to Mortgage Introducer later this afternoon.
