Ladbrokes, Britain's second-largest bookmaker, is poised to strike a deal with gaming software supplier Playtech, to boost its online operations, The Sunday Times reported.
The newspaper said the two were in advanced talks about a tie-up that would hand Playtech a bigger role in running Ladbrokes' internet casino and bingo games.
It said a partnership could be announced in the next few days.
Playtech is due to publish full-year results on Thursday.
Ladbrokes said last month it expected to see payback this year from a 50 million pound ($75 million) investment in an online business that had failed to keep pace with rivals.
Earlier this month, Playtech sold its stake in a joint venture with William Hill, Britain's No. 1 bookmaker, for 424 million pounds.
Both Playtech and Labrokes were not immediately available for comment.
($1 = 0.6699 British pounds)
(Reporting by James Davey. Editing by Jane Merriman)