STATE COLLEGE -- The NCAA, state officials and Pennsylvania State University are in talks to reconsider the historic punishment on the school in the wake of the Sandusky sex abuse scandal, a step that could include restoring 111 wins stripped from coach Joe Paterno's record, according to people familiar with the discussions. Also under consideration is a proposal to leave the $60 million fine levied by the league within the state and the university, to be used for child protection. Details of the negotiations were unclear Monday but the talks seemed designed to stave off a looming court battle and drown out a longstanding drumbeat of criticism from Penn State alumni and Paterno supporters. It comes a month before a trial planned in Commonwealth Court over a lawsuit filed by State Treasurer Robert McCord and State Sen. Jake Corman (R., Centre) challenging the validity of the consent decree. In a statement Monday, Corman said he has not agreed to any settlement or proposed resolution. He said he is preparing for the trial. "While I am open to conversations on a possible resolution, to be sure, any settlement will be judged upon what is best for the Commonwealth," Corman said. McCord's office issued a statement saying the treasurer intends to honor the confidentiality of settlement discussions. Among the terms being discussed, sources say, is a provision under which Penn State would acknowledge that the NCAA had the right to impose the sanctions. In the two and half years since the punishment was announced, an NCAA monitor consistently has praised the university for reforms, including its overhaul of board operations and adding ethics and athletic integrity officers. In recognition of the progress, the NCAA previously lifted a ban on postseason play, paving the way for the Nittany Lions to play in the Pinstripe Bowl last month. The league also restored football scholarships. But restoring Paterno's record as the winningest coach in Division I football would be a major victory for legions of fans and Penn State supporters who have argued from the outset that he and the school was unfairly tarnished in the scandal. Paterno's teams in State College compiled 409 wins over a half-century. He was fired by the board and later stripped of 111 wins after an internal investigation concluded he and other administrators missed or ignored signs that Jerry Sandusky, his longtime defensive assistant, was a serial pedophile.