The news comes after a meeting between Formula One team managers and President and CEO of Formula One, Bernie Ecclestone in Malaysia this weekend. The group met to discuss a replacement for sole tyre provider, Bridgestone who will quit the deal at the end of next year's season.
It is reported that Michelin is keen to rejoin the premier motorsport series, but has placed several serious conditions on its return including free trackside advertising at all rounds and making each team pay for its own tyres. If successful, the deal could cost each team between 2 and 5 million euros (AUD$2.9 million to $7.3 million) per season.
Michelin also said it wants all teams to change from the 13-inch wheels currently in use to larger, 18-inch wheels to better integrate Formula One with other racing programs under the Michelin umbrella.
Korean tyre manufacturers Hankook and Kumho have also expressed an interest in supplying F1 tyres.
Bridgestone is said to be re-evaluating its position.