The move, which could be announced as early as Wednesday evening, would further demonstrate Google's intentions to push further into the handset market. The deal would be for HTC's mobile-phone original design operations, the report added.
HTC has been a longtime contract manufacturer for Google, most recently helping it launch its Pixel smartphone, debuted last year.
HTC halted trading of its shares Wednesday pending an announcement.
Shares of Alphabet were climbing nearly 1% high in late afternoon trading on Wednesday.
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