Navantia is reportedly in exclusive talks to acquire Harland & Wolff and bring the heavily lossmaking firm out of administration.
It is understood the Spanish shipbuilder and renewables fabrication, manufacturing and assembly business could take control of the Northern Ireland-based company by late November, according to the Sunday Telegraph.
The deal is expected to cover all four yards operated by Harland & Wolff in Belfast, Methil and Arnish in Scotland and Appledore in west England, securing around 1000 jobs.
Navantia had been widely expected to mount a rescue bid to protect the involvement of both companies in the £1.6bn Future Solid Support shipbuilding contract awarded by the Royal Navy in 2022.
The company has been providing short-term financial support for the Harland & Wolff yards to continue operating while it considers its future options, according to insiders.
Navantia and administrators Teneo both declined to comment.