Tata Boss Ratan Tata launches the world's cheapest production car
Tata Motors, the owner of Jaguar Land Rover, is to inject "tens of millions" of pounds into the British carmaker, according to the Financial Times.
A spokesman for Tata Motors did not deny the report.
A cash injection by the Indian owner would give the UK government more time to decide whether to use public money to bail-out the company.
Business Secretary Lord Mandelson had cast doubt on a bail-out, saying the state was a "lender of last resort".
Debasis Ray, head of corporate communications for Tata, did not deny the report but would not say how much money would be injected.
"It is our company and we are running a business," he said.
"Discussions with the government, however, are confidential and cannot be revealed. We have to run the company and are doing so to the best of our abilities."
State aid
The carmaker has asked the government for financial support and its case has been backed by unions which say the industry needs help.
Labour peer Lord Bhattacharyya had suggested ministers were discussing a £667m loan package for Jaguar.
But Lord Mandelson said that Tata group must "look to their own resources."
Jaguar Land Rover has been hit hard by a dramatic slump in sales that has affected carmakers across the world.
In the US, the government has agreed to a $17.4bn (£11.6bn; 12.4bn euros) bail-out package for its auto industry.
In the UK, the Confederation of British Industry has said urgent government loans are needed to preserve 800,000 UK jobs in the carmaking industry. The Unite union says tens of thousands of skilled jobs are "hanging by a thread".
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