Bloomberg News
Carl Icahn

Caesars Entertainment Corp. (CZR - Get Report) is gambling on Carl Icahn's input to help the casino operator pick its next chief executive, according to Reuters, which cited people familiar with the matter.

The talks are part of a settlement between Icahn and Caesars that would also include board seats, according to the report, after the billionaire activist investor disclosed a 9.8% stake in the company last week. 

After disclosing his stake, Icahn asked Caesars to launch a process to explore a sale. Caesars responded by saying that the offers it had received for the company so far undervalued it and didn't create enough value for shareholders. 

Caesars current CEO, Mark Frissora, is scheduled to step down later this year and Icahn has proposed that Anthony Rodio, CEO of privately held casino gaming company Affinity Gaming, be his replacement. 

Caesars emerged from bankruptcy in 2017 and has been able to shrink its debt load to $9.1 billion from the $25 billion it had when if first filed for bankruptcy protection. 

While the company's stock is down more than 30% over the past 12 months, it has shown signs of recovery in recent weeks, climbing more than 10% over the past three months and 36.5% since the start of the year. 

Caesars shares were up 2.2% in trading on Monday.