In addition to the financial aspects of the settlement, the city is also expected to agree to a series of police reforms requested by the family, including a policy that all warrants be approved by a police commander before they are submitted to a judge for approval.
In June, the Louisville Metro Police Department fired Brett Hankison, one of three officers involved in Taylor's fatal shooting - a step that marked the most significant action taken in the case so far but one that also drew public condemnation because no one had been formally charged criminally in her death.
Shortly after midnight on 13 March, three officers entered Ms Taylor's apartment by executing a no-knock search warrant - a court document that authorises police to enter a home without warning. Although the warrant in question listed Taylor's name and address, it was clear that police's investigation was centered on a suspected drug dealer named Jamarcus Glover, who had already been arrested by police at a location 10 miles from Taylor's residence before the ill-fated raid on Taylor's apartment.
According to several sources, the payout will reportedly overshadow any police settlement in Louisville's history.
He and two other plainclothes officers - Sgt. Jonathan Mattingly and Officer Myles Cosgrove - used a battering ram to open the door of Taylor's apartment in the 1 a.m. raid, the Louisville Courier Journal reported.
A CNN review of the shooting found that police believed Taylor was home alone when she was in fact accompanied by her boyfriend, who was legally armed.
A grand jury could soon decide whether criminal charges should be filed against any of the officers, local media report.
NYT notes officers claimed they announced themselves, but Walker claims he did not hear them.
City officials vehemently denied the accusations that gentrification played any role in the narcotics investigation.
Attorney Sam Aguilar has expressed frustration with the City's response to Breonna's case. "The family right now has a very understandable desire to know the full circumstance of what went on that night".
No-knock search warrants have since been banned in Louisville.
Follow Darcy Costello on Twitter: @dctello.