The five Parramatta officials suspended by the NRL in the wake of the club's salary cap scandal are reportedly set to drop legal action against the governing body this week.

With the case relating to the group's provisional bans due to return to the Supreme Court on Tuesday, discussions between the officials and the NRL continue to head towards a possible resolution.

According to News Corp Australia, the only issue is said to be an agreement on who will fund the governing body's legal costs.

The development comes just days before Eels chairman Steve Sharp, directors Tom Issa and Peter Serrao, chief executive John Boulous and head of football operations Daniel Anderson are due to formally respond to the NRL over their deregistration.