According to a report by the Detroit News, Nissan is looking to acquire 20 percent of Chrysler, a move that would bring the U.S. company into the ranks of the current Renault-Nissan alliance.

Citing sources close to the negotiations, the offer has been placed before Cerberus Capital Management, the private equity firm that currently holds 80 percent of Chrysler. The company is also entertaining an offer from General Motors.

Nissan declined to comment one way or another on the report. Simon Sproule, the spokesman for the company said, "This is more of the same noise and we have no comment to make on any of the recent speculations."

The same source used in the newspaper account indicated that Cerberus CEO and founder Stephen Feinberg is more disposed toward the deal with General Motors. For its part, GM needs fresh cash to shore up its flagging holdings.

Analysts have been lukewarm on the suggestion of a Chrysler-GM merger, in general saying that the move would not make that great a difference for either company but agreeing that the greatest advantage might lie in bolstering consumer confidence.

Takeshi Osawa, a senior fund manager at Norinchukin Zenkyoren Asset Management quoted in an Automotive News account of the potential Nissan deal said, "It's hard to see the benefit when the global auto market is slowing down. I'm not sure Nissan can afford to make such a move. It's likely to be negative on its shares."