The European Commission will impose the massive penalty against the internet giant as early as tomorrow, according to sources.
Eurocrats have accused Google of breaking EU competition law by distorting search engine results to promote its shopping service.
The case was triggered by scores of complaints from rival websites, including Microsoft and Trip Advisor.
We continue to engage constructively with the European Commission
Google spokesman
If sanctioned, the huge sum will eclipse the previous £1bn (€1.1bn) record fine that fellow tech company Intel was forced to pay in 2009.
Responding to the reports, a Google spokesman said: "We continue to engage constructively with the European Commission.
"We believe strongly that our innovations in online shopping have been good for shoppers, retailers and competition."
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