Google is in talks with smaller players in the online discount coupon market after Groupon turned down the web giant's $6 billion buyout offer, the New York Post said, citing a source close to the situation.

Groupon's smaller rivals LivingSocial and BuyWithMe may now be on Google's radar after Groupon deal fell through, the Post said.

BuyWithMe interim President David Wolfe, who declined to comment on whether he was speaking to Google, told the Post that he believes Google needs to enter the coupon advertising market.

Google could not immediately be reached for comment.

Groupon, a privately held, Chicago-based company which was launched about two years ago sends its members daily emails with about 200 deals for goods and services.

(Reporting by Sakthi Prasad in Bangalore; Editing by Hans Peters)

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