Thomas Cook has refused to comment on speculation it is bidding to buy Holiday Autos.
Holiday Autos owner lastminute.com has again denied the car broker is up for sale, following initial reports in Travel Weekly’s sister title Travolution in June.
Early negotiations are understood to have started with at least two interested parties.
It is estimated the company could fetch anywhere between £30 million and £50 million.
Travolution reported in June that a high-profile financial consultancy was recently appointed to handle the sale.
Lastminute.com bought Holiday Autos in 2003 for £39.7 million.
The rumour comes 10 months after the online retailer was forced to deny similar plans for bed bank