EU foreign ministers are due to meet to discuss calls to list the military wing of Lebanese militant group Hezbollah as a terrorist organisation.
The move requires the agreement of all the EU's 28 member states.
If they agree, it will become illegal for Hezbollah sympathisers in Europe to send the group money or for European diplomats to meet its militant staff.
The BBC's Chris Morris in Brussels says the EU is moving closer to a decision, but some members are unenthusiastic.
They argue that it would be difficult to distinguish fully between the group's military and political wings, and that it could further destabilise the situation in Lebanon.
'Essential component'
Hezbollah has a powerful political organisation. It has been part of Lebanese governments.
EU officials are reportedly proposing a compromise to satisfy more sceptical members - a statement that the bloc "should continue dialogue with all political parties in Lebanon".
Meanwhile the Lebanese government on Friday urged Brussels not to move against Hezbollah, describing the militant group as an "essential component of Lebanese society".
But the group's involvement in the war across the border in Syria, in support of President Bashar al-Assad, has hardened European opinion, our correspondent says.
Countries that support the EU move say there is compelling evidence that Hezbollah was responsible for a bomb attack against Israeli tourists in Bulgaria last year in which six people died. The group denies any involvement.
EU diplomats also point to a court case in Cyprus, where a Hezbollah operative was found guilty of planning attacks against Israeli citizens.
Hezbollah has already been blacklisted by the United States, Canada, Australia, the UK and the Netherlands.
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