The European Central Bank is looking to tailor a fresh loan facility to reduce lenders' dependence on the regulator's cash, Reuters reported, citing four sources familiar with the discussion.

An ECB committee working on the design of the central bank's multi-year credit, known as targeted longer-term refinancing operations, or TLTROs, has proposed setting the rate on the loan at a premium of 25 basis points above the ECB's current main refinancing rate of zero, the news agency noted.

Dovish policy advisers, however, asked ECB staff to set out a new proposal with more favorable terms, saying such a rate was too high and did not provide banks with enough support, the sources told Reuters.

Currently, the main refinancing rate is seen as the lowest achievable rate on the TLTROs, although policymakers could possibly opt for a negative figure if the European economy performs worse than expected, the sources said.

The ECB will likely publish the loan's final terms at its June 6 meeting, the sources added.

Policymakers are also discussing stricter collateral rules on the new loans and more ambitious targets for lending volumes for those granted the lower rate, according to the March 12 report.