NBC reportedly allowing Brian Williams to stay but not as 'Nightly News' anchor

Jan. 10, 2010: Brian Williams from "NBC Nightly News" answers a question during the panel for NBC News at the NBC Universal sessions of the Television Critics Association winter press tour in Pasadena, Calif. (Reuters)

NBC reportedly is allowing embattled journalist Brian Williams to stay but not as “Nightly News” anchor, the Wall Street Journal reported Wednesday.

Current fill-in anchor Lester Holt is expected to fill the lead anchor position permanently, media reports said.

The report comes just four months after the company suspended Williams for exaggerating a story about an incident involving his aircraft while covering the Iraq War.

According to the New York Post, Williams' agent Bob Barnett, NBC Universal CEO Steve Burke and NBC News chairman Andy Lack hammered out a deal, amid speculation that Williams could walk away from the network completely.

"There is an agreement. Brian won't return to the anchor chair but agreed to a different news-oriented role,' an insider told the New York Post. "The negotiations have been complicated and difficult."

Williams’ precise role still remains unclear, although according to the New York Times, Williams is expected to work at the cable news network MSNBC.

A source told the Post that Williams' role "is something very different, but within news, that gives Brian room to grow and rebuild his reputation."

The Post reported that it is not immediately clear how much of Williams' $50 million contract would be honored by NBC.

NBC could announce the change as early as Thursday, the Wall Street Journal reported.