Turkish diplomats are reportedly close to releasing a US pastor at the center of a diplomatic spat between Turkey and the US.

Brunson, an evangelical preacher from North Carolina, is currently under house arrest in Izmir.

He has been was accused by Turkey of being part of the 2016 attempted coup which aimed to overthrown the government of Recep Tayyip Erdoğan.

President Trump has demanded his release, and imposed economic sanctions on Turkey which are contributing to its current economic crisis .

The Middle East Eye reported that Turkish diplomats are ready to comply — but want something in return.

Turkish diplomats are reportedly close to releasing an imprisoned American pastor who is at the center of a diplomatic crisis between Turkey and the US.

According to the Middle East Eye, officials in Ankara are willing to concede to US demands for the freedom of Andrew Brunson, an evangelical preacher accused of playing a role in the attempted coup there in 2016.

Officials reportedly know Brunson's release is the first step to alleviating the diplomatic and economic crises sparked between the two countries, but are aiming for further negotiation with the US.

Turkish officials visited Washington last week with the idea of seeking leniency for a US investigation into a Turkish bank, which a source told the Eye fell through, but opened a dialogue.

The Eye's report is based on comments from an anonymous diplomatic source. Last year, it was reported the Eye received funding from Qatar, though it has denied this.

In the Turkish courts, Brunson has been unsuccessful in arguing for his release, and on Friday had his latest appeal rejected, according to The Associated Press.

But according to Middle East Eye, Turkish diplomats said they could release Brunson anyway, subject to further concessions from the US which could soothe diplomatic tensions and helping alleviate the diplomatic and economic crisis.

The Turkish lira has been in a steady slide and reached an all-time low earlier this week. Inflation is at a 14-year high, and looks to be on the brink of a major debt crisis.

Its proximity to conflict-ridden states and involvement in NATO poses a serious concern of possible worldwide effects of a potential economic collapse.

Though Turkey's financial troubles did not originate with the battle over Brunson's release, the moves have sped up the Turkish economy's decline.

The US doubled tariffs on Turkish steel and aluminum imports and Turkey hit back with $533 million of tariffs on some US imports that include cars, tobacco and alcoholic drinks, with the additional warning it would boycott US electronics.

Turkey has found itself in an economic chokehold as President Recep Tayyip Erdoğan refuses to allow the central bank to raise interest rates, thereby steadying inflation.

Brunson, an evangelical Christian pastor originally from North Carolina but a longtime resident of Turkey, was accused by the Turkish government of terrorist involvement and playing a role in the Turkish military's 2016 attempted coup to overthrow the government.

President Donald Trump tweeted Thursday night to threaten new sanctions as punishment for Turkey's detainment of a "great patriot hostage."

"Turkey has taken advantage of the United States for many years. They are now holding our wonderful Christian Pastor, who I must now ask to represent our Country as a great patriot hostage. We will pay nothing for the release of an innocent man, but we are cutting back on Turkey!" he tweeted.

Turkish trade minister Ruhsar Pekcan responded to Trump's tweet, telling reporters Friday Turkey would continue to answer to any sanctions from the US "in accordance to World Trade Organization rules."

Brunson was detained for 1 1/2 years before being released to house arrest last month because of "health problems," according to the Anadolu news agency.

Over 160,000 people, including some Americans, have been detained after the government charged them with helping orchestrate the same coup, according to the UN.