21st Century Fox is reportedly aiming to focus on its news and sports division, and sell off outside assets including its movie and tv studios, and its stake in various networks such as Fox, FX, Sky, and Star TV.
If a deal is made, Fox is expected to make its decision by the end of the year.
The Reuters sources asked not to be identified because the negotiations are confidential.
Fox and Disney were not immediately available to comment.
Fox is exploring a potential sale as it is has been considered undervalued relative to its peers, said Brian Wieser, an analyst at Pivotal Research.
The Twenty-First Century Fox Studios flag flies over the company building in Los Angeles, California U.S. November 6, 2017.
Disney is known to be in acquisitive mood ahead of the launch of its global SVOD service in 2019, and The Wall Street Journal has reported that talks have resumed.
FILE PHOTO: The logo of the Disney store on the Champs Elysee is seen in Paris, France, March 3, 2016. Under the deal, current Fox shareholders would retain their shares in the slimmed-down company as well as new Disney stock in a fixed exchange ration.
Reuters had reported last month that apart from Disney, both Comcast and Verizon Communications Inc (VZ.N) had also expressed interest in acquiring a significant part of Fox's assets. Studios, and a stake in Hulu (Disney and Comcast each own stakes already).