T-Online, which is owned by German telecoms firm Deutsche Telekom, has as yet not decided whether to take the talks further, according to the Wall Street Journal.
An acquisition would give T-Online access to the UK, Netherlands and Italy, and would be a welcome boost for Excite@Home, which reported a first-quarter loss of $832.6m (£586.6m) last month.
www.excite@home.com
www.t-online.com