The legislation would reduce mandatory minimums for certain drug offenses and largely ban solitary confinement for juveniles.
Egypt’s justice minister Ahmed Mekki has said an agreement is “imminent” from talks between President Mohammed Morsi and the country’s Supreme Judiciary Council.
Those talks come after four days of violent nationwide protests over president Morsi’s decree granting himself sweeping new powers.
The president has said the new powers are needed to protect Egypt’s transition to democracy. Democracy activists say it’s a power grab taking Egypt backwards into dictatorship.
The protests are taking a toll on the Egyptian economy, with the country’s stock markets down sharply as foreign investors flee.