Beijing city is considering taking Didi Global under state control.
According to a report by Bloomberg news, government-run firms would invest in the Chinese ride-hailing company.
It says the city government's proposal is to regain control over one of its largest corporations, particularly the data it holds.
The report cited unidentified people familiar with the matter.
Other scenarios being considered include the consortium taking a nominal share accompanied by a so-called "golden share".
That would include veto power and a board seat.
Didi and the Beijing city government did not immediately respond to requests for comment from Reuters.
Shares in Didi rose as much as 8% before paring gains to about 4.5% in pre-market trade.
Bloomberg said the "golden share" arrangement considered for Didi would be similar to an investment the Chinese government has made in TikTok-owner ByteDance's key Chinese entity.
Didi faces a cybersecurity investigation by Chinese authorities after its New York initial public offering in June.
The firm is controlled by the management team of co-founder Will Cheng and President Jean Liu.
SoftBank, Uber and Alibaba are among other investors in the company.