The two companies began conversations late last month and have not reached a deal yet, according to the report.
Reliance, ByteDance and TikTok did not immediately respond to Reuters requests for comment.
The Indian government in June banned 59 Chinese apps, including TikTok and WeChat, for threatening its "sovereignty and integrity" after border tensions with China.
Last week, U.S. President Donald Trump unveiled bans on U.S. transactions with the China-based owners of messaging app WeChat and TikTok, escalating tensions between the two countries.
Microsoft Corp has been in talks to acquire the U.S. operations of the video-sharing app.
Social media platform Twitter Inc has also expressed interest in having a deal with TikTok, sources familiar with the matter told Reuters late last week.
(Reporting by Sabahatjahan Contractor in Bengaluru; Editing by Aditya Soni)