The newspaper said the discussions include converting a portion of Hall's compensation for 2010 to equity from cash.
The article said a deal would not apply to this year's compensation for Hall, who heads up Citigroup's Phibro LLC energy trading arm. Hall, according to reports, stands to make as much as $100 million this year.
Reuters reported on Wednesday that a source close to the bank said Hall's contract would not be subject to the review of pay czar Kenneth Feinberg because it was signed before a February 11 cutoff date.
A separate source familiar with the matter said Feinberg would have flexibility in his authority over grandfathered contracts and that he could exercise power over future payments.
Feinberg is expected to begin reviewing compensation structures at several companies that received bailouts, including Citi, which has taken $45 billion from the U.S. Treasury's Troubled Asset Relief Program, or TARP.
Feinberg has been consulting with seven companies that have yet to pay back money they borrowed from the government, including Citigroup, American International Group Inc
They face a Friday deadline to submit pay proposals.
(Reporting by Steve Eder; Editing by Lisa Von Ahn)