The pre-released Sueddeutsche Zeitung report came a day after the Munich daily said that similar US-German talks were seen close to failure, sparking denials from both Berlin and Washington.
Both sets of talks follow revelations by fugitive former intelligence contractor Edward Snowden of American mass surveillance of global online and phone data in cooperation with Britain's GCHQ service.
Germany's Chancellor Angela Merkel was particularly angered by news that the US National Security Agency (NSA) had long monitored her mobile phone, further straining ties between the transatlantic allies.
Such a pact had been discussed confidentially for months in Berlin and would commit the countries of the 28-nation bloc "to refrain from mutual espionage", both political and economic, the daily said.
The envisioned agreement "would allow surveillance only for previously agreed purposes such as combating terrorism and the proliferation of weapons of mass destruction," said excerpts of the report.