Latest attempt to combine two largest US toy companies initially reported by Wall Street Journal.
Hasbro has made another approach to Mattel about a potential takeover offer.
The Wall Street Journal first reported the news on Friday (November 10), saying that an approach had been made recently, although the terms were unclear and a deal still may not materialise.
According to CNBC, Mattel shares jumped by more than 20% in after-hours trading on the Hasbro news. Hasbro shares jumped more than 2% on the report.
Mattel has a market value of $5 billion, while Hasbro is worth about $11 billion.
The Hasbro/Mattel merger chatter is something of a business press favourite.
In February 2016 it emerged that the two had held talks about a potential merger, with Hasbro approaching Mattel in late 2015. Talks also took place two decades previously.