Home Retail Group has held talks with Habitat owner Hilco about selling Habitat-branded items within Homebase stores, according to reports.
Retail Week has reported that HRG chief executive Terry Duddy has held discussions with Hilco boss Paul McGowan, but says talks have currently been put on hold.
Items discussed include tins of Habitat-branded paint, but not the sale of the entire business, the report added.
Habitat was sold to Hilco at the end of 2009 by IKEA owners ICAF, and reported losses of almost €40m during 2009/10.
Home Retail Group, who wouldn't comment on the reported talks, is due to release its interim management statement on Thursday.