Target has agreed to pay out a total of $10m (£6.74m) to people affected by a data breach in 2013, according to reports.
Each claimant will get up to $10,000 in damages under the proposed settlement of a class-action lawsuit, pending court approval.
Consumers said that their credit card details were among the data leaked.
The proposal also requires Target to adopt and implement data security measures.
"We are pleased to see the process moving forward and look forward to its resolution," said Target spokeswoman Molly Snyder.
Target will deposit the settlement amount into an interest bearing escrow account under the settlement and claims will be submitted and processed primarily online through a dedicated website.
Should a judge formally grant the motion to settle the case, the firm would also have to appoint a chief information security officer and maintain a written information security program.
Court documents filed in Minnesota on Wednesday stated that the parties had conferred and Target had not opposed the motion.
CBS News, which reported the settlement, said a court hearing on the proposed settlement was set for Thursday in St Paul, Minnesota.
Target has said at least 40 million credit cards were compromised in the breach during the 2013 holiday shopping season and may have resulted in the theft of as many as 110 million people's personal information, such as email addresses and phone numbers.
A US judge in December cleared the way for consumers to sue the retailer over the breach, rejecting Target's argument that the consumers lacked standing to sue because they could not establish any injury.
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Watch: Ben Hammersley looks at one of the biggest data breaches of all time, on the Target store, in America.
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