"We will begin by suspending some visa bans as a first stage from today," said a diplomat speaking on condition of anonymity as EU foreign ministers began a day of talks in Brussels.
Lifting all sanctions will be "conditional on the continuation of positive action by the authorities," the source added.
EU foreign policy chief Catherine Ashton hailed "the quite extraordinary changes in the last weeks and months" and announced she would visit the country in April as she went into the ministerial meetings.
The 27-nation bloc has been divided over how soon to lift sanctions, with some insisting on waiting for by-elections on April 1, which will see a historic bid for parliament by Nobel peace laureate Aung San Suu Kyi.
Ashton said the European Union had been in contact with her on the issue
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