Suzuki and Volkswagen are reportedly considering reviving their short-lived and ill-fated partnership to end a two-year legal stoush.

Suzuki-Volkswagen

Bloomberg reports Suzuki president Osamu Suzuki and Volkswagen chairman Ferdinand Piech are attempting to reach a mutually beneficial agreement outside of court, according to an unnamed source close to the matter.

It is understood the heads of the Japanese and German automotive giants still see significant potential and business sense in the partnership announced in 2009 intended to jointly develop and produce inexpensive small cars for emerging markets.

The partnership became increasingly dysfunctional and collapsed in 2011, with both car makers accusing the other of breaching the conditions of their agreement.

Suzuki demanded Volkswagen return the 19.9 per cent stake it acquired for 1.7 billion euros ($2.4 billion) in 2009, filing a lawsuit at an arbitration court in London.

It is believed the ongoing court case will continue if Suzuki and Piech fail to reach a resolution.

Spokesmen from both companies declined to comment on the reported talks.