According to the BBC, which quoted government sources, Mr Daniels is due to receive the sum for his work during 2010 after waiving his right to a bonus for the past two previous years.
The banker may also receive a further Â£2 million worth of shares as part of a long-term payment plan.
Mr Daniels is due to leave the bank in March of this year and is entitled to a maximum Â£2.3 billion bonus which is set to be 225 per cent of his salary.
A decision on whether he will accept the sum of money is expected to be confirmed in February 2011.
The news comes as the UK government is under increasing pressure to take action to curb bonuses paid to senior banking executives.
During Parliamentary Question Time, British prime minister David Cameron and Labour leader Ed Miliband debated the issue of banker bonuses with the former described as âdefender of the banksâ by the leader of the opposition.
By Jim Ottewill