Fiat Chrysler (FCA) and Tesla have drawn up a plan to avoid the forms having violent EU emission rules, the FT has reported.
The paper says that under the deal Tesla will be counted as part of the FCA fleet.
It will allow the Italian carmaker offset carbon dioxide emissions from its cars against Tesla's, by bringing down its average figure to a permissible level
FCA said it would "optimize the options for compliance regulations".
The carmaker continued: "FCA is committed to reducing the emissions of all our products … the purchase pool provides flexibility to deliver products our customers are willing to buy while managing compliance with the lowest cost approach. "
There is no indication of the specific amount that FCA has agreed to pay Tesla.
Last year FCA, which has been lagging behind rivals in the manufacture of electric vehicles, said it planned to spend € 9bn (£ 7.75bn; $ 1
Under EU rules, carmakers can join with rival companies to form so-called open pools but none have done so until now.
FCA applied to form an emission pool with Tesla, and also Alfa Romeo, in February
Toyota and Mazda have also applied to the EU to form an emission pool, as have Citroen, Peugeot, and Opel.