Vodafone and Openreach are understood to be in talks about rolling out an ultrafast fibre optic broadband network in major UK cities.
The Telegraph quotes industry sources as saying the two companies are in "early but serious" discussions about jointly investing in a large-scale infrastructure project.
This would see fibre optic cables being deployed initially in major metropolitan areas in order to replace the copper-based systems that are currently in place.
According to the Telegraph, Vodafone believes prioritising towns and cities will enable large numbers of homes and businesses to be connected to faster and more reliable broadband more quickly.
However, no details have emerged over as yet over how much this project would cost, although the newspaper suggests the bill could "run into billions of pounds over time".
This comes amid Openreach's ongoing consultation with communications providers to identify the level of demand for a major full-fibre deployment.
Openreach is engaging with stakeholders both to gauge demand for full-fibre within the industry and devise new investment, risk and cost-sharing models.