The move comes as talks with BC Partners to buy the 52% of Trader Media, the publisher of classified magazine Auto Trader, it does not already own in a £500m deal broke down.
It is understood that GMG, which also owns The Guardian and Observer national newspapers, could now sell its stake in Trader Media to finance its radio business expansion.
The stake would give it around £500m -- coincidentally about the same amount that a bid for Capital Radio would likely cost it.
The move follows its June purchase of Jazz FM, which it acquired in a £44.5m deal. Its other radio interests include Real Radio in South Wales, Central Scotland and Yorkshire and Scot FM.
It now wants to add another major radio station brand to its business and a bid for Capital Radio would give GMG control of one of the UK's most important commercial stations, Capital FM in London. The deal would also give it control of London alternative music station Xfm.
The deal to buy Capital Radio is being looked at by GMG's chief executive Bob Phillis.
It is not the first time in recent months that Capital Radio, home to star breakfast show presenter Chris Tarrant, has been talked of as a possible takeover target. US radio giant Clear Channel had reportedly taken a look at making a possible bid for Capital late last year.
Emap, which owns the Kiss FM and Magic radio stations, was also reported to have looked at Capital. It went so far as to ask investment bank Lazards to look at the implications of a possible deal.
At the time, Capital Radio chief executive David Mansfield said that Capital would not be eaten up by any rival business. He said that a bid from a European or American company was highly unlikely. "Capital is a very strong and highly regarded business and is likely to be the predator not the prey," he said.
The government has cleared the way for such acquisitions in the radio industry in its communications bill, which is due to become law later this year.
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