RWE AG is currently the preferred sixth partner for the Nabucco gas pipeline, Handelsblatt reported, citing a spokesman for the Turkish energy ministry.
"We can say that RWE is ahead of Gaz de France," the spokesman told the newspaper.
The newspaper cited sources close to the negotiations as saying Turkish consortium partner Botas prefers the German utility's participation over that of French rival Gaz de France.
The Nabucco gas pipeline will link Turkey's borders with Iran and Georgia with Austria. The 5 bln eur EU-backed project is aimed at securing the EU's gas supply by diversifying routes and suppliers away from Russia.
The founding members of the consortium which is to build the pipeline are Austria's OMV AG, Hungry's MOL, Botas of Turkey, Transgas of Romania, and Bulgaria's Bulgargaz.
A spokesman for RWE told the newspaper it is "the consortium partners' business to decide who will participate."
He confirmed the company is still interested in joining the consortium.