The two tobacco companies met with FTC commissioners this week, the report said.
The Journal cited sources saying that some within the agency have objected to the proposed deal, but others want to approve the merger "with a binding legal settlement that includes divestures."
Reynolds had offered to sell several brands, including Kool and Salem, to Imperial Tobacco Group for $7.1 billion.
The market cap as of Thursday afternoon for Reynolds is $37 billion, and Lorillard's is $24 billion, according to FactSet. The firms are the second- and third-largest cigarette companies in the U.S., the report said.
The firms announced their intention to merge in July.
Lorillard is the maker of Newport cigarettes, among other brands.