Speaking with Reuters, an unnamed company source reportedly confirmed that talks between the pair were at an advanced stage, but no deal had yet been signed.
Daimler is said to be looking for a 20-25 percent stake in MV Agusta, with the deal to involve an investment plan to expand sales.
Currently, 20 percent of Italy-based MV Agusta’s global sales come from customers in its home country, but a deal with Daimler could include a focus on growing sales in other markets.
The deal could go ahead as early as next week, with the Mercedes-AMG arm to represent Daimler’s side of the partnership.
A separate report from Germany’s Sueddeutsche Zeitung put a 30 million euro (AU$43.2 million) price-tag on a 25 percent stake in MV Agusta, with an option to increase that share in the future.
Acquiring a stake in MV Agusta could serve as a replacement for the previous AMG-Ducati partnership, which ended in 2012 when Ducati was bought by Audi.
Besides the image-boost that goes with partnering a motorcycle brand, Mercedes-AMG could potentially access the Italian bike-builder’s small engine technology for future use as stand-alone power plants or in hybrid-powered vehicles.
Both Daimler and MV Agusta reportedly declined to comment.