Apple has approached British Formula One team owner McLaren Technology Group for a strategic investment or a potential buyout, the Financial Times reported, citing sources.
The loss-making automotive group could be valued at between 1 billion pounds ($1.30 billion) and 1.5 billion pounds, the newspaper reported.
A deal with McLaren, which also produces high performance sports cars, could give Apple key automotive technology amid reports that the iPhone maker is working on a self-driving car.
Apple has hired dozens of automotive experts over the past year and is exploring making charging stations for electric cars.
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Apple also invested $1 billion in Chinese ride-hailing service Didi Chuxing earlier this year.
Apple and McLaren could not be immediately reached for comment.