A resolution to the probe could be reached as early as January, sources told the newspaper.
As part of the deal, Takata could plead guilty to criminal misconduct after its defective air bags were linked to a number of deaths and injuries.
To settle, Takata may pay a fine of up to $1 billion, the Journal reported.
Takata declined to comment to CNBC.
Read the full story about a potential settlement between the U.S. Justice Department and Takata here.