A leading Irish media baron has evinced interest in acquiring an estimated 30% stake in Dainik Jagran, one of the largest circulated Hindi-language dailies.
The paper is printed at 25 sites and the Jagran Group owns one of India's most popular online information portals.
"Tony O'Reilly, chief executive of Independent News and Media Group is in advanced talks and if successful, the deal will give the Irish entrepreneur's company a substantial foothold in one of the world's fastest-growing media markets," London's The Sunday Times reported.
O'Reilly is expected to make an official announcement in the next few days, the report said. "The deal is likely to cost several tens of millions of euros," the newspaper quoted one person involved in the talks.
Based in Kanpur, Jagran is wholly owned by the Gupta family. "They have been in talks with O'Reilly about the sale of a stake since 2000 but in recent weeks the talks have gained momentum," the report said.
The Gupta family is said to have held negotiations in Ireland and India with O'Reilly and his son, Gavin, who is IN&M's chief operating officer.
According to the report, O'Reilly has negotiated an agreement that will allow him to quit the Indian deal if it proves unsuccessful. Equally, he will have the option of increasing his company's stake if things go well.
IN&M's move into India represents something of a coup for O'Reilly, the report said. He first invested in IN&M when it was a purely Irish business in 1973. Since then the company has invested in market leading international newspaper groups in Australia, New Zealand and South Africa.
In the UK, it owns the Independent and Independent on Sunday newspapers, as well as the Belfast Telegraph Group. The Independent's circulation has gone up after the scrapping of its broadsheet format this year.
In September 2004, IN&M announced a 25% rise in operating profit to '129million (£88million) for the half year to June 30, driven by growing advertising and circulation revenues.
IN&M declined to comment, but people involved in the talks said their advanced nature would be confirmed this week.