This follows President Donald Trump's efforts to implement sweeping measures to minimise federal spending.

The Wall Street Journal reported last week that Oracle will offer federal agencies a 75% discount on its license-based software and a "substantial" discount on its cloud service through the end of November.

Google's cloud contract is likely "to land in a similar spot", the Financial Times said, citing a senior official at the General Services Administration, adding that equivalent discounts from Microsoft's Azure and Amazon Web Services are expected to follow soon.

"Every single one of those companies is totally bought in, they understand the mission," the senior official told the newspaper. "We will get there with all four players."

Reuters could not immediately verify the report.

Google and the General Services Administration did not immediately respond to Reuters' requests for comment outside regular business hours. In April, Google agreed to offer a 71% discount till September 30 to US federal agencies for its business apps package that could generate up to $2 billion in cost savings if there is government-wide adoption.

--Reuters--