The space agency reportedly intends to solicit concrete proposals from industry within 60 days for a 100-kilowatt reactor set to go into operation by 2030.
Acting NASA administrator Sean Duffy is expected to announce the plans in the coming days, according to Monday's report.
The plan comes against the backdrop of intensifying competition with China, which is aiming to launch its first crewed moon mission around the same time.
The NASA document warns the first nation to deploy a working reactor could "declare a keep-out zone which would significantly inhibit the United States," according to Politico.
The idea of a nuclear reactor on the moon is not new. Russia proposed the concept years ago and NASA has recently stepped up its own research.
A reactor would provide the stable power supply needed for future moon missions, especially during the roughly two-week-long lunar night when solar energy is unavailable.
The US is aiming to return astronauts to the moon for the first time in more than 50 years. Under its Artemis program, NASA plans to land a crew on the lunar surface in 2027.
However, the timeline has already been pushed back multiple times and it remains unclear whether President Donald Trump will continue to support the effort.