DRB-Hicom is set to hold a board meeting with Geely next week to discuss a sale of a stake in Proton.
Sources familiar with the matter said that DRB-Hicom is looking to sell a minority stake in Proton and a controlling stake in Lotus to Geely.
According to The Star, PSA Group prefers a controlling stake in Proton.
Both representatives from PSA and Geely declined to say anything.
DRB-Hicom has earlier mentioned that the search for Proton's foreign strategic partner is expected to be completed by the first half of 2017.
Earlier in March, DRB-Hicom released a statement saying that all bidders are still in the running to be selected as Proton's partner. "Our intent is to turn around the fortunes of PROTON. There are strengths and capabilities of the carmaker that, given a new proven partner that can offer technology, capabilities and new markets, will push PROTON as a brand to be reckoned with," DRB-Hicom Group Managing Director, Dato' Sri Syed Faisal Albar.