The common single-currency budget was one of French President Emmanuel Macron's key ideas for protecting the euro, but it caused differences between France and Germany, the region's two largest economies.
French Finance Minister Bruno Le Maire and Germany's minister, Olaf Scholz, will "jointly present a proposition on Monday... about the layout for a budget for the eurozone," the ministry source told AFP.
"It's a major step forward," the source said. "We will look forward to sharing with other members."
The source said the amount of the budget has not been established as the proposal was to first set out the "architecture and main principles" of the budget.
According to a copy of the French-German proposal, the budget would be part of the EU budget structure and governed by the 19 euro members.
Macron will travel to Berlin at the weekend to meet with German Chancellor Angela Merkel where the two leaders will bolster their alliance as champions of a united Europe.
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