The Sunday Times said the two companies are alarmed with the speed at which BT has accelerated its position in the market over the past few years, notably since it started offering its BT Sport package bundled with its broadband services.
Sources claimed high-level executives have been meeting in recent weeks to discuss how they could work together to counter BT's growth. But the report claims the firms have ruled out building any new broadband networks, given the huge cost and time it would take.
With BT rolling out services across the UK under the Broadband Delivery UK (BDUK) scheme the firm is well placed to massively increase its customer base as its Retail unit competes against firms such as TalkTalk and Sky.
V3 contacted Vodafone and Sky for comment on the report but had received no reply at the time of publication.
Ovum analyst Steven Hartley told V3 that there was a "logic" in the two companies considering a closer relationship.
“Everywhere in the world there are fixed and mobile incumbents adding content services and you’re seeing those services being made available over mobile and broadband networks,” he said.
As such, a deal that would see Sky have access to Vodafone’s mobile network and Vodafone being able to offer more Sky content would be a good fit for both firms, Hartley said, although he noted this would still raise issues.
“Sky has always had a fairly rocky relationship with UK phone companies to say the least. It doesn’t have a mobile virtual network operators deal and that speak volumes,” he noted.
However, given that the two firms have already partnered before, with Vodafone offering Sky Sports access as part of its 4G launch last year, there could well be a deal on the cards at some point in 2014.
The telecoms market is already set for a new challenger as Liberty Global works through its acquisition of Virgin Media for $23bn. This will bring Virgin renewed strength to challenge BT in the broadband market as it looks to push its own fibre network over BT's offerings.
BT itself is going through a period of transition as it enters new markets, such as sport, and goes through several management changes, the most recent of which saw ex-HSBC UK chief Joe Garner join as the new Openreach chief executive, replacing Liv Garfield.
Boris the robot outed as man in rented robot suit
Mission will provide vital data about the performance of rocket, spacecraft, autonomous docking system and the landing system
The flight will take off from California's Mojave Air and Space Port and could happen as soon as 13th December
Earth was showered with heavy particles called muons, which could have caused mutations and cancer in animals