The Department of Justice is prepared to indict former Sen. John Edwards (D-N.C.) for allegedly violating campaign finance laws in an attempt to hide an affair, according to multiple reports.

Edwards reportedly knows about the plan and is considering his options. He could make a plea arrangement or face a trial, which could be long and costly.

An indictment or a plea bargain could happen within the next two weeks, according to reports.

The Department of Justice plans to argue that two wealthy supporters donated hundreds of thousands of dollars to the Edwards campaign -- money that went to support Rielle Hunter, a videographer Edwards's campaign with whom Edwards had an affair.  The government will claim the funds were illegal campaign contributions.

Edwards has admitted to fathering a daughter with Hunter.

The government's case reportedly depends on former Edwards campaign aide Andrew Young who originally said that he was the father of Hunters's daughter and later accused Edwards of engineering an effort to hide the affair from the public.

The government's plans to prosecute is the latest step by federal investigators in a two-and-a-half year inquiry into Edwards over the donations. ABC News first reported the possible indictment.