(Reuters) -Elliott Management proposed a settlement with Starbucks ( SBUX ) that would involve a board expansion and governance improvements, while allowing CEO Laxman Narasimhan to keep his job, CNBC reported on Thursday.

Starbucks ( SBUX ) and Elliott did not immediately respond to Reuters requests for comment.

Elliott made its offer days before media reports that the activist investor has a significant stake in the coffee chain, the report said.

Starbucks ( SBUX ) had on Tuesday confirmed during its third-quarter earnings call that Elliott was a shareholder and that talks with the investor had been "constructive".

(Reporting by Juveria Tabassum in Bengaluru; Editing by Arun Koyyur)