A senior French prosecutor requested the dismissal of a case against IMF head Christine Lagarde, over a business arbitration when she was French finance minister, a news report said.
Lagarde, 59, is under investigation for alleged negligence in connection with a 400-million-euro (445-million-dollar) state payout to businessman Bernard Tapie over the sale of his sportswear company Adidas.
Prosecutors say that during mediation she pushed for a settlement that was far more than might have been decided by a court.
A senior prosecutor associated with the court trying the case made the recommendation Tuesday, news agency AFP reported, citing an unnamed source.
It is now up to the Law Court of the Republic (Cour de Justice de la Republique), which investigates allegations of ministerial wrongdoing, to decide whether to drop the case, the report said.
A spokesman for the IMF in Washington declined to comment. Lagarde has previously said the charges were unfounded and denied wrongdoing.