The EU "will suspend sanctions on eight out of the ten people concerned and one company," the source said, adding that a formal decision is expected next Monday or Tuesday.
The source confirmed reports that Mugabe had been invited to an EU-Africa summit in Brussels in April but the Zimbabwe president had so far not replied.
"The head of state of Zimbabwe has been invited but the EU has had no response so far," said the source, who asked not to be named.
In February last year, Brussels suspended an assets freeze and visa ban against most of the Zimbabwe firms and individuals targeted after what it judged to be a "credible" referendum on a new constitution.
Mugabe however remained on the list along with nine other individuals and two companies, compared with 112 people and 11 firms previously.
In September, the EU lifted its sanctions on the Zimbabwe Mining Development Corporation, operator of one of the world's largest diamond fields and which was blacklisted for allegedly channelling funds to Mugabe's ZANU-PF party.