The new Netflix advertising-supported tier will cost subscribers between $7 and $9 per month.
The figure, first reported by Bloomberg is only a dollar cheaper than the $9.99 paid by US subscribers for its standard tier.
Its planned to bring in the budget option in half a dozen territories by the end of the year, however it looks as if the full rollout will have to wait until 2023.
Netflix plans to sell around four minutes of airtime an hour in both pre-roll and midroll.
The streamer has not commented on the plans.
The proposals were first mooted after a troubled first quarter when Netflix lost 200,000 subscribers, the first time it had entered negative territory.
Subsequently, it has been overtaken by Disney, which also has plans for its own advertising-supported tier to be introduced later this year.
At the end of June, Disney had a total of 221.1 million combined streaming subscribers, edging past the 220.6 million posted by Netflix for the same period.
