The site, which has attracted around 8m members, has brought in financial advisers BDO Stoy Hayward to help review possible options for the business.
According to a report in the Sunday Times, this could include a sale of the business or a management buy-in to help the site expand internationally.
Co-founder Stephen Pankhurst told the Sunday Times: "In the past 18 months we have had many parties interested and we are reviewing all our options with BDO. We are quite advanced in the process."
The site is hugely attractive to potential investors, not least because the business has millions of email addresses and a subscription model that appears to be working. While it is free to register details and view records, Friends Reunited charges users an annual fee of 拢5 to contact other members.
The business was started by Pankhurst, a computer programmer, and his business partner Jason Porter in 2000 and is estimated to attract around 15,000 to 20,000 new members every day.
As well as looking to expand internationally Friends Reunited has signed a deal with music giant Universal to take its brand offline with the launch of a music compilation CD.
The Friends Reunited album, a double-CD of hits from the 80s, was launched in November. Users registered to Friends Reunited were invited to vote for their favourite tracks from a selection on the site.
Friends Reunited and UMTV initially researched the project by asking users to tell the site about their favourite music.
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