The European Union has asked Turkey to open some of its ports to Greek Cypriot traffic in exchange for easing Turkish Cypriot economic isolation.
If accepted, the deal could lift an immediate threat to Turkey's EU entry talks from Cyprus, which has the power to veto the application.
Finland, the EU president, wants Turkey to open a limited number of ports to Cyprus, while proposing Turkish Cypriots in unrecognised northern Cyprus be permitted to trade directly internationally through a port which would be run jointly by Greek and Turkish Cypriots under EU supervision.
"It is a compromise model that involves Turkey opening a number of designated ports," a source close to the Cypriot government said.
Cypriot Foreign Minister George Lillikas was quoted by the Cyprus Mailtoday confirming that a Finnish proposal had been made but declining to give details.
"Such ideas are not so new," one Turkish Foreign Ministry source said, adding Ankara had not yet received any formal proposals from the presidency. "In the past we have made clear Turkey will only open its ports if all embargoes against the Turkish Cypriots are lifted."
Turkey does not recognise Cyprus, represented in the EU by a Greek Cypriot government. It has refused to meet an EU obligation to open its ports to Cypriot traffic unless the EU makes good on an earlier pledge to end the economic isolation of northern Cyprus.