Macquarie Group is said to be considering an $850 million all-cash offer for the funds management arm of Lloyds Banking Group within weeks.
A report in the Wall Street Journal says Macquarie has renewed its interest in the Scottish Widows asset management business, and could edge out a rival offer from Britain's Aberdeen Asset Management.
A spokeswoman for Macquarie declined to comment on Friday.
If successful, Macquarie will add Scottish Widows to its Macquarie Funds Group, which manages about $381 billion and is best known for its infrastructure and fixed-income funds.
Macquarie runs several equity funds in Australia and the US but has limited exposure to European stocks.
During a presentation in February, it said the unit had "capital for expansion".
Aberdeen said last month it was in talks to buy Scottish Widows Investment Partnership (SWIP) from Lloyds. Lloyds is expected to make a decision on the sale by November 22.