Michael Cohen
Michael CohenReuters

US President Donald Trump's former lawyer Michael Cohen is considering a plea deal with prosecutors in New York on charges of tax-fraud and other financial offenses, NBC News reported.

Cohen would plead guilty under the agreement and may become an informant in the investigation into Russian collusion in the 2016 US presidential election. The deal is still in the negotiation phase and may fall apart.

Cohen, who once stated that he would "take a bullet" for the President and was one of Trump's closest confidant, was under investigation over $20 million in loans which were given to his family business and for payments allegedly made to a porn star on Trump's behalf.

However, sources told CNN that Cohen is not cooperating with the Russia investigation and is only seeking to avoid the "spectacle" of a trial by pleading guilty.