Portsmouth are speaking to Dave Kitson's agent regarding the termination of the striker's contract, says club administrator Trevor Birch.
Birch is hoping to facilitate a deal with Kitson to end his contract, thereby reducing the club's wage bill further to ensure Portsmouth are not plunged into liquidation.
Kitson still has 12 months remaining on his contract at Fratton Park, but Birch is hoping a deal can be struck.
He told the Chichester Observer: "We are talking and talking sensible. Matters are significantly better than they were before.
"We have to pay a figure for him to walk away from his current contract."
Birch added: "There are some meaningful discussions going on though."