LVMH, which has been examining ways to expand in the U.S., submitted a preliminary, non-binding offer to Tiffany earlier in October, one of the sources told Reuters.
Tiffany has hired advisers to review LVMH's offer but hasn't yet responded to it. There is no certainty Tiffany will negotiate a deal, the report said.
The exact price that LVMH was offering to buy Tiffany, which has a market capitalization of $11.9 billion, couldn't be learned, according to Reuters.
But the "all-cash" takeover deal could be worth around $120 a share, according to another report Sunday in the Wall Street Journal.
Bloomberg was first to report that LVMH was holding talks with Tiffany.
Tiffany shares closed Friday at $98.55. The stock has gained more than 22% so far in 2019.
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