Elliot Management is willing to take an Argentine settlement of a combination of bonds and cash, a source familiar with the matter told CNBC.
The firm has not yet heard from the country about a settlement, the source said.
Under U.S. court directives, Argentina owes the hedge fund about $1.5 billion on June 30.
Earlier, an Argentine government official said that no U.S. trip to discuss settlement was planned, the source said.
Argentina is required to pay Elliott as well as other bondholders.
—Reporting by CNBC's Kate Kelly. Written by CNBC.com.