Anglo American is set to buy a $4.7 billion stake in De Beers, which will raise its control of the diamond producer to between 75 and 85 per cent.
The Guardian reports Anglo has received approval from the South African Government to enter a deal with the Botswana Government over De Beers.
The $4.7 billion stake previously belonged to the prominent South African Oppenheimer family, and The Guardian reports the deal is expected to be closed in the second half of this year.
Under the deal the Botswana Government, the world's top diamond producing country, has the option to increase its stake in De Beers to 25 per cent.
If it takes the option Anglo's final stake will be 75 per cent, and if it doesn't Anglo will own 85 per cent.
Rio Tinto and BHP Billiton are still in the process of finding buyers for their diamond assets, which are valued at $1.9 billion and $2.2 billion respectively.
Earlier this year analysts from Nomura said if the two companies combined their assets only De Beers and Russian state-owned Alrosa would have larger diamond businesses.