The move could see Lufthansa take a stake in SAS as it looks to expand its low-cost Eurowings business, according to news agency Reuters.
A full takeover of SAS remains unlikely.
"Lufthansa wants to build Eurowings, but it does not want to take on any restructuring risk," a source told Reuters.
Like other legacy carriers, Lufthansa has faced considerable challenges in recent years, particularly from younger low-cost airlines. In a bid to overcome some of these it revived Eurowings in February 2015.
Meanwhile, Reuters also reported that Lufthansa could also be eyeing up a takeover of Brussels Airlines.
It already owns 45%, which it bought for €65 million in 2009, and has the option to acquire the rest by 2018.
