The Lokpal bill envisages setting up an independent ombudsman, who would have the power to investigate and prosecute politicians and civil servants.
Activists and opposition parties say the bill should include the prime minister and lower-level bureaucracy.
Activist Anna Hazare has threatened to go on hunger strike if the bill is not passed during this parliament session.
His 12-day anti-corruption fast four months ago became the focus of a national campaign and put pressure on the government to act on the issue.
Although the government has now drafted a new anti-corruption bill, some opposition parties and activists say it is too weak.
Media reports say that the government is likely to agree to include the prime minister in the ambit of the ombudsman with some conditions, relating to matters of external affairs and national security.
India has recently been hit by a string of high-profile corruption scandals, badly damaging the government’s reputation.
Among them are an alleged multi-billion dollar telecoms scam, claims of financial malpractice in connection with the Delhi 2010 Commonwealth Games and allegations that houses intended for war widows ended up in the hands of civil servants.
A recent survey said corruption in India had cost billions of dollars and threatened to derail growth.