But regulators feared the unappealing name could turn away consumers, potentially undermining the order, the newspaper said, citing people familiar with the negotiations.
Microsoft could not immediately be reached for comment.
Last month Microsoft lost a months-long bid to suspend sanctions for breaking the law and said it would offer a stripped-down version of Windows and share some protocols with rival makers of servers by early February.
On Friday, the European Commission held out the possibility that Microsoft could face fines up to 5 percent of its average daily turnover unless it complies soon with the EU antitrust decision.
According to the newspaper, a Microsoft spokesman in Brussels said the company would look at alternative names for the new version of the operating system.
"We suggest a name, and it's open for review by the commission," the newspaper quoted Dirk Delmartino, the spokesman, as saying. "If they suggest another name, we are open to that as well. We have said we will do everything possible to comply with the order."
Delmartino told the newspaper Microsoft already has made the stripped-down version of Windows available to computer makers and will have a version of the new software ready for sale to retail customers in February.
Because the product has not yet been packaged and shipped to retail stores, Delmartino told the newspaper he did not foresee a problem changing the name.
EU CONTINUE TALKS: The EU Commission said on Monday that it is continuing talks with Microsoft on offering a stripped down version of its Windows operating systems to European consumers.
Jonathan Todd, Commission spokesman told a news conference: "There are ongoing contacts between the Commission and Microsoft concerning various aspects of the implementation of the remedies."