Abdel Basset al-Megrahi, 57, who is dying of prostate cancer, must drop his appeal to be considered for repatriation under a prisoner transfer agreement signed by Britain and Libya.
Unconfirmed media reports this week said the Scottish government was planning to release Megrahi on compassionate grounds.
The court in Edinburgh will meet on Tuesday to consider the request, a spokeswoman said.
Megrahi is serving a life sentence with a minimum term of 27 years after being convicted in 2001 of bombing Pan Am flight 103 in 1988 and murdering 270 people.
