Verizon has not made a formal proposal to AOL, and no agreement is imminent, Bloomberg said, citing people who asked not to be named.
AOL shares jumped 12 percent to $50.05 after the bell. A spokesman for Verizon declined to comment.
A joint venture, if formed, would focus on advertising technology, Bloomberg cited one of the people as saying.
Read more: Verizon is seeking expertise in online content, mobile video and advertising, according to one of the Bloomberg sources.