Axa Investment Managers is reportedly under review by its insurer parent company for a potential merger.
Natixis is being eyed as a potential partner, Bloomberg reports.
The transaction could be a precursor to an eventual IPO or partial sale. The option to retain Axa IM as it is was also on the table.
The merger talk follows significant consolidation in the sector this year, with Standard Life joining forces with Aberdeen Asset Management last month and the new Janus Henderson Investors launching in H1.
Axa IM holds €735bn (£652.5bn) in assets.
Axa and Natixis declined to comment on the reports.