A deal would be good news for O2, which has been making various moves to find a corporate deal and consolidate with other brands, after BT agreed to buy rival network EE for £12.5bn.
According to reports, Telefonica’s talks with Sky are understood not to be based on a potential takeover, but rather a commercial partnership that would enable Sky to provide mobile services.
However, Sky already has an association with mobile operator and O2 rival Vodafone, offering mobile users Sky content on devices, including Sky Sports News.
The companies are also understood to have held talks about Vodafone selling Sky packages when it enters the broadband market later this year.
Meanwhile, O2 has recently been in talks with a number of potential suitors, including Three’s parent Hutchison Whampoa, which earlier this week was reportedly trying to buy the mobile network after O2 was rejected by BT.
According to a report in the Sunday Times, Three’s owner was in early-stage talks.