People close to the matter told Bloomberg that the US telecoms giant has approached AOL and is looking to negotiate an agreement designed to expand its mobile video offering.
If formed, a joint venture would focus on advertising technology, which could then be paired with a future online video product.
Verizon has not made a formal proposal to AOL and a deal is not imminent, sources said.
In September last year, Verizon CFO Fran Shammo said that the company would consider divesting a number of network assets.
