The source told Reuters that Telecom Egypt would pay the full amount requested by the regulator for one of four 4G licences the government is selling as part of a shake-up of the sector.
The source did not give the price.
The reforms will potentially allow Telecom Egypt, which owns a 45 percent stake in Vodafone Egypt, to enter the mobile phone market directly. They could also allow Egypt's three mobile operators to offer fixed-line services, ending Telecom Egypt's dominance.
Egypt's telecom regulator has directly offered 4G licences to the three companies currently offering mobile services - Orange Egypt, Vodafone Egypt, and Etisalat -- as well as to Telecom Egypt.
Only Orange Egypt has disclosed the price it has been offered to obtain the licence -- about $400 million.
The operators have until the first week of August to submit responses.
The government hopes to collect a total of 22.3 billion Egyptian pounds ($2.51 billion) in licence fees, Communications and Information Technology minister Yasser al-Kadi said in June.