Ubisoft is reportedly keen to acquire THQ's studios and IP.
According to MCV sources, the French publisher has held "lengthy discussions" with the US firm in a bid to forge a deal.
They claim that Ubisoft is seeking a bargain deal and is prepared to hold out until THQ is forced to sell off specific assets.
Ubisoft could potentially take ownership of brands such as Saints Row, Company of Heroes, Darksiders, Homefront and Red Faction, as well as recently revealed but unannounced games.
Earlier this week THQ announced it plans to sell all of its games and assets. A private investment firm has lodged a bid for $60 million, but THQ's bankruptcy process allows for other bidders to make competing offers over the next month or so.
News of Ubisoft's interest in THQ's assets isn't new. Last month, the publisher's CEO Yves Guillemot said he'd consider acquiring some of THQ's IP.
"What happened to [THQ] is something that happens regularly when we have transition," he said. "Some can make it, some decide to go in different direction. It happened with Atari and Midway and also Acclaim last generation. ... It's something that happens in this industry and that's the way the industry consolidates.
"They have good things," he added. "We are always interested in good brands. For sure, it's something we can consider, but I can't tell you more."