According to Bloomberg, CenturyLink has discussed the idea with Rackspace, which is said to be conducting an internal review of its strategic options.
As of the end of last week, Rackspace had a stock market value of $5.33 billion.
A bid for Rackspace would enable CenturyLink to compete against US rivals such as Verizon, which has developed a strong offering in the cloud services space.
