Michael Schumacher is negotiating with the Mercedes Grand Prix team, according to the BBC.
BBC F1 pundit and former team owner Eddie Jordan says Mercedes wants the seven-time champion as its lead driver after taking over title-winning Brawn.
"The possibility is being actively pursued and I believe it is going to happen," Jordan told the BBC.
"It started with a meeting between Michael, Ross Brawn and Daimler chief executive officer Dieter Zetsche at the Abu Dhabi Grand Prix.
"At the moment, it is not possible for Michael to drive for Mercedes because he has a consultancy contract with Ferrari. "But I understand he was due to meet Ferrari president Luca di Montezemolo with a view to him being released - and that it will be approved because it is in the interests of F1.
"I believe that is being planned at the moment.
"I also believe Ross and Michael have spoken in recent times and that Michael likes the idea of driving a Mercedes run by Ross. It's a mouth-watering idea.
"Schumacher was bitterly disappointed he didn't get to come back to replace Massa - he's keen to race again. And this is a dream for both parties.
"Michael and Mercedes have go way back - he drove for their sportscar team before he raced in F1, and they were responsible for getting him in to F1. They paid the then Jordan team to give him his debut in 1991.
"He has won all these titles but never driven in F1 for Mercedes."