White House in Talks to Replace 'Sequester': Report

Is a deal to resolve the "sequester" in the works?

White House officials are said to be in advanced talks to replace the so-called sequester - a slew of spending cuts that along with tax increases will take place automatically at the end of the year and likely put the U.S. into recession - with a package of smaller, more targeted spending cuts and tax increases, according to a report in The Wall Street Journal.

The sequester would cut spending by about $100 billion in 2013 and beyond and affect myriad federal programs.

(Read More: Cramer - Until 'Fiscal Cliff' Deal Comes, Buy These Stocks)

The White House is meeting with Republican and Democratic congressional leaders Friday to begin negotiations on a possible deal.

The plan being put together in the White House would stop the spending cuts for six to 12 months, according to the Journal, and replace them with more targeted reductions and the means to boost revenue.

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