The $3.5 billion in fund is to be likely released to the Bank of International Settlements (BIS) based in Basel, Switzerland, a source privy to the matter said.
"An international board of experts has also been set up to disburse the money," the source told TRT World.
The announcement is expected to be made in the coming weeks.
Around $9 billion of Afghanistan’s central bank foreign currency assets held with the US and other foreign banks were frozen after the Taliban took over Kabul on August 15 and drove out the US-backed government of President Ashraf Ghani.
US President Joe Biden's administration went ahead with talks on releasing Afghanistan's foreign-held assets last month despite the late al Qaeda leader Ayman al Zawahiri's presence in Kabul.
The State Department, however, ruled out recapitalizing Afghanistan’s central bank (DAB) as "a near-term option" after Zawahiri was killed, claiming that the Taliban had raised worries by harboring him in violation of the 2020 US troop withdrawal agreement.
In the new development, DAB could receive the funds for end use "but the US would want a strict compliance with anti-money laundering and terrorist financing protocols in addition to a third-party supervision of the funds", the source said.
The international board of experts is tasked with ensuring all those conditions are met.
The Taliban government is open to a US proposal for third-party supervision but wants to retain authority over how it is used.
"The frozen reserve is the property of the people of Afghanistan; it is a reserve of the central bank used in its transactions," Taliban spokesperson, Suhail Shaheen, told TRT World.
"It is for the people of Afghanistan to decide on what to do with its reserve and how to use it. The unilateral decision about the reserve of Da Afghanistan Bank is illegal unless agreed to by DAB."
MP/PR