Gruner & Jahr, which is owned by media group Bertelsmann, is nearing the end of its negotiations with Pearson, according to the report.
Pearson has been looking to sell its 50% stake in the German version of the FT and was believed to be in talks with Germany's Spiegel magazine group about a sale in September last year.
That deal reportedly fell through because Spiegel executives could not convince their staff, which has a say in management decisions, to agree. Gruner & Jahr has a 25.5% stake in Spiegel.
FT Deutschland, which was launched in 2000, has a circulation of 105,000 copies, according to Pearson's interim results at the end of July 2007.
The FT Deutschland talks follow Pearson's €240m (£167m) sale of its French business newspaper Les Echos to luxury goods group LVMH in November last year.
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