American International Group's board of directors has accepted a rescue package worth $30 billion, its third government bailout, according to media reports.

The government aid also includes more lenient terms on a previous government investment in preferred shares of the company, and lower rates on a credit line offered by the government, according to Reuters.

The deal is expected to be announced on Monday, when the insurer is expected to report a $60 billion loss.

The interest rate on the insurer's credit line from the government would be cut to the same rate as the three-month London Interbank Offered Rate which stands at 1.26 percent, sources told Reuters.

An additional equity commitment from the government would let the insurer issue preferred stock to the government later, according to the sources.

The insurer would also give the U.S. Federal Reserve a preferred stock interest in its American life Insurance Co, according to the report.