(Reuters) - U.S. Federal Communications Commission Chairman Tom Wheeler is likely to circulate a draft order approving Charter Communications Inc's $56 billion deal to buy Time Warner Cable Inc , the Wall Street Journal reported, citing people familiar with the matter.

The order, which could be circulated as soon as this week, would levy some conditions on the deal, such as preventing Charter from including clauses in pay-TV contracts that limit a content company's ability to offer its programming online or to new entrants, the WSJ reported on Tuesday.

The transaction will also likely include a requirement for Charter to build or upgrade service to more homes, the Journal said.

Charter said in May that it would buy Time Warner Cable in a $56 billion cash-and-stock deal that would make it the No. 2 U.S. Internet and cable company after Comcast .

The FCC was not immediately available for comment.

(Reporting by Anya George Tharakan in Bengaluru; Editing by Sandra Maler)