According to sources close to LOCOG, the London organising committee, negotiations are ongoing. Since last month's handover to London 2012 in Beijing, organisers have begun the search for tier-two and three domestic partners. It is not known at which level Cadbury hopes to strike a deal.
The partnership will represent another high-profile coup for LOCOG, which signed up seven tier-one sponsors ahead of the Beijing Games.
At the 2002 Commonwealth Games in Manchester, Cadbury was a presenting partner of the Queen's Jubilee Baton Relay. It was also an official sponsor of Team England and an official supporter of the other home nation teams.
A spokeswomen for LOCOG said: 'Since Beijing, we've had a huge amount of interest from companies that want to be a part of 2012. As we start looking at tier-two and tier-three opportunities, there will inevitably be speculation about companies that may be interested, but we won't comment.'
Cadbury was not available for comment.
Olympics brand ties
- London 2012 currently has seven tier-one domestic partners - Adidas, British Airways, BP, BT, EDF Energy, Lloyds TSB and Nortel - and one tier-two partner, Deloitte.
- The 2012 Games will also be supported by global partners including McDonald's, Coca-Cola and Samsung.
- Sponsors can pay up to £80m for tier-one status, according to industry estimates.