Yahoo has been working with advisers for about two weeks, but has not received any offers, Bloomberg News said.
In February 2008, Microsoft (MSFT) bid almost $50 billion for Yahoo, only to withdraw the offer three months later. The company's stock has fallen almost 50% since then, leading to speculation that it is vulnerable to takeover bids.
Yahoo is "perhaps more valuable to a financial buyer able to unlock the value of the assets in a private setting," Youssef Squali, an analyst with Jefferies & Co, told Bloomberg News.
AOL, Yahoo and Goldman Sachs all declined to comment to Bloomberg News.
The takeover reports sent Yahoo shares surging as much as 8% in early trading.