Fairfax Media claims the deal would have seen Hird take the fall for the club and plead guilty to misconduct charges alone when the AFL Commission meets on August 26.
As part of the arrangement, it's reported Corcoran and Reid would have had to resign from their posts at Essendon.
It's a story that Hird has labelled 'totally incorrect'.
"That's not true," Hird said on Saturday after the club's 45-point loss to North Melbourne.
"That's not true at all. I'm not sure why that was reported.
"I'm unable to give the specifics of what was offered, but all I know is that I was charged, the club was charged and three other people were charged. It was never put to myself, or the club, that if I took a guilty plea the other three or the club wouldn't be charged.
"That's totally incorrect."
League chief executive Andrew Demetriou has revealed he hopes the full set of charges against Hird, Corcoran, Reid, Thompson and the Essendon Football Club will be made public in the coming days.
It comes as Bombers chairman Paul Little used his match-day speech to indicate the club would fight its way out of the charges.
"What I can say to you all as football followers is that we are fully aware that mistakes were made, particularly in the areas of management and governance which have now been effectively addressed," Little said on Saturday.
"However, the nature of some of these allegations go way beyond what we believe is the truth, in particular with regard to the use of illegal substances.
"We cannot let these allegations go unchallenged.
"The club acknowledges that James Hird, Mark Thompson, Danny Corcoran and Dr Bruce Reid are all decent people of outstanding character, each of whom has contributed positively not only to our club but to football in general."
Jacqui Reed is a reporter with AFL Media. Follow her on Twitter @JacquiReedAFL
