Myer could have a new owner by Christmas as billionaire Solomon Lew and private equity groups engage in a bidding war for the troubled department store.
While Mr Lew has recently suggested he has no interest in Myer, sources have told The Australian Financial Review they would be "staggered" if he wasn't examining the retailer.
Mr Lew could face competition from private equity firms, including Archer Capital, which are also believed to be considering a bid, the report said.
OptionsXpress market analyst Ben Le Brun said Mr Lew's retail group Premier Investments was likely to be interested in taking control of Myer, with a plan to turn around sales and boost its online presence.
"If the bid was approved and successful, it would probably be in new hands by the end of 2015," he said.
"What we're talking about here is an all-out takeover."
The improved performance of David Jones since its takeover by South African retailer Woolworths Holdings' in July 2014 has probably led to suitors seeing potential in Myer, Mr Le Brun said.
"There's the potential there for some kind of bidding war," he said.
But Morningstar analyst Farina Parsons said Mr Lew was unlikely to be interested in Myer, and private equity will have limited potential to cut costs.
"Department stores are challenged and Solomon Lew is more about being the actual manufacturer and owner of brands," she said.
"I don't see what sort of synergy benefits or really what they can achieve by going out there and buying Myer."
Mr Lew in March downplayed a suggestion he may be interested in Myer, after relinquishing his stake in David Jones in its takeover.
"We don't own any shares in any departments stores anywhere in the globe," he said.
"We are focused on our business at this point in time."
Shares in Premier Investments, which owns clothing brands Just Jeans, Dotti and Portmans, are near record highs, while Myer recently hit a record low.
Speculation of takeover interest boosted Myer shares on Wednesday, adding 11.5 cents, or 8.8 per cent, to $1.425.
Premier Investments shares dropped two cents to $13.22.
Mr Lew was a director, chairman and vice chairman of the former Coles Myer group between 1985 and 2002.
Coles sold Myer to US private equity group Newbridge Capital in 2006, before it was re-listed on the share market in 2009.
Comment has been sought from Premier Investments.
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