Santander Asset Management is one of a small number of parties vying to buy abrdn's private equity unit.
Sky News reported that a deal is expected to be struck in the next couple of months that could value the division at approximately £250m.
At least one other party has been in discussions in recent weeks, although a source close to Fidelity International denied a suggestion that it was considering an offer.
The business unit is a legacy of Standard Life Investments, whose parent company merged with Aberdeen Asset Management in 2017.
Under chief executive Stephen Bird, the group has renamed and streamlined its strategy in recent years, acquiring certain businesses, while selling others.
Structural moves have been aimed at simplification, exiting what were deemed non-core businesses to focus on areas in which it already has scale.
Later this month, abrdn will publish its full-year results, with analysts predicting a pre-tax profit forecast of £228m, while assets under management are expected to have fallen to £502bn.
Both abrdn and Santander declined to comment on the speculation.
Last July, it was reported that abrdn was preparing to offload its private equity side, with investment bank Rothschild to find a buyer for the division, which managed nearly £14bn in assets at the end of 2021.
Don't miss the latest headlines with our twice-daily newsletter - sign up here for free.
