Research In Motion (RIM) faces an August 31 deadline to give Indian authorities the means to track and read BlackBerry Enterprise email and its separate BlackBerry Messenger service.
The government, concerned about the potential for militants to use the secure BlackBerry network to carry out attacks, has vowed to shut the services if RIM fails to comply, cutting it out of one of the world's fastest-growing telecoms market.
An RIM technical team in New Delhi has been working with the department of telecoms and security agencies to find a way out.
"We are expecting they will come up with some solution for Enterprise mail next week," the source said. He did not want to be named as RIM's discussions with the government are not public.
India said this week that it would allow the messenger service to continue beyond the deadline as it had been assured access to the services, but could shut down the secure email service if access is not given by then.
India is one of a number of countries putting pressure on RIM, which has built the reputation of the BlackBerry, popular with business professionals and politicians, around confidentiality.
Government officials have said RIM has assured manual access to BlackBerry instant messenger by September 1, and automated access by year-end.