Sun Microsystems Inc
But there were no discussions as of Wednesday and each company is waiting for the other to make a move, the sources told the agency.
IBM withdrew a $7 billion offer for its smaller rival after Sun broke off exclusive talks earlier this month.
If the two sides did agree a deal, they would likely face intense regulatory scrutiny due to the strong position the combined company would have in the high-end server market.
Neither company could be reached for comment by Reuters.
(Reporting by Jennifer Robin Raj in Bangalore; editing by John Stonestreet)