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Blackstone Group (BX - Get Report) is in advanced talks to buy and lease back the iconic Bellagio and MGM Grand Las Vegas casinos from MGM Resorts International (MGM - Get Report) , Bloomberg reported on Monday.

Citing people with knowledge of the matter, the Bloomberg report didn't include proposed transaction terms. The report said the two sides have yet to agree on a deal and that one may not be reached. 

A spokesman for MGM Resorts, the largest operator of casinos in Las Vegas, declined to comment on the Bloomberg report when asked by TheStreet. Blackstone officials couldn't immediately be reached for comment. Both companies also declined to comment to Bloomberg on its report.

MGM Resorts was trading up 1.96% to $29.64, while Blackstone shares were relatively flat at $53.59.

Bloomberg reported in July that MGM Resorts has been exploring selling and leasing back the properties individually or bundled together to free up cash for expansion.

MGM formed an independent board committee in January to evaluate ways to extract value from its real estate portfolio.