WJAC-TV has learned through various sources that McQueary’s attorneys are in talks with Penn State on a hefty financial settlement.
A spokesperson for Penn State would not comment on any possible settlement.
McQueary was put on administrative leave in November, days after Sandusky’s arrest and has threatened to file a whistleblower lawsuit.
He was one of the key witnesses in the Sandusky trial.
He told the court he saw Sandusky with Victim 2 in a shower in the Lasch Building.
McQueary has been criticized for running out of the building and not helping the child.
That child has never been identified.
This is the incident that led to the firing of the late head coach Joe Paterno and former Penn State President Graham Spanier.
McQueary said he informed Paterno of the incident, who then passed the information onto Athletic Director Tim Curley and Vice President Gary Schultz.
Those men are now facing perjury charges and failure to report suspected abuse.