According to German business monthly, Manager Magazin, talks are at an advanced stage, though no deal has yet been struck.
Deutsche Telekom launched its IPTV Entertain offering in 2006, giving subscribers access to 160 TV channels (including 45 in HD), and an online video library consisting of more than 20,000 films.
In its latest quarterly results, Deutsche Telekom said that it now serves 2.26 million TV customers in Germany, up 10.8% from 2.04 million in Q1 2013.
While neither Deutsche Telekom nor Netflix have commented on the deal speculation, Netflix did confirm last month that it is due to launch in Germany as part of a “significant expansion” in Europe.
Other Netflix launches lined up for later this year are for Austria, Switzerland, France, Belgium and Luxembourg.