Citing an unnamed source close to the Labour party, it said Labour leader Ed Miliband would seek to reform Britain's EU ties and back holding a membership referendum, but not by 2017 as Prime Minister David Cameron has pledged.
The report said Miliband was open to changing the bloc's founding treaties and would use any treaty change as an opportunity for a referendum. An announcement was expected in the next two weeks, the article said.
If an election was held today polls suggest Labour would win since they enjoy a lead of around 5 percentage points over Cameron's Conservative party. The next national election is still 15 months away, however.
Labour has yet to publicly state whether it wants an EU referendum, but has been critical of a promise by Cameron, it re-elected, to hold an in/out vote on Britain's EU membership by the end of 2017.
If he wins the next election, Cameron has said he would try to reform Britain's EU ties before offering such a vote.
When asked about the Times report, a Labour spokesman declined to confirm or deny it.
"We will keep our position consistent ... We have always said that any decision about a European referendum will be based on the national interests," the spokesman said.
"We do not believe committing now to an in/out referendum in 2017 is in Britain's national interest."
Some opinion polls show a slim majority of Britons would vote to leave the EU if given the chance, with many frustrated at perceived interference from Brussels in domestic politics. That frustration has been reflected in the growing support in polls for the anti-EU UK Independence party (UKIP).
In an interview with Reuters earlier this month, UKIP leader Nigel Farage said Miliband's backing for a referendum on EU membership would be the "single most important determinant of whether Britain leaves the European Union" because it would dramatically increase the chances of a vote taking place.