As reported by Car Magazine, the prestigious French performance brand – which Volkswagen purchased in 1998 – will be acquired by the Croatian electric sports car specialist.
In return, it's believed Rimac will give Volkswagen unrestricted access to its all-electric platform.
The transfer, which has not yet been officially confirmed by either party, is complicated by the fact that Rimac is already partially owned by Volkswagen-subsidiary Porsche (which owns 15.5 per cent).
It is understood the Volkswagen Group is looking to let go of several other so-called “hobby brands" to better fund its mainstream developments.
Meanwhile, Rimac needs production facilities – like those owned by Bugatti – to build its upcoming C Two hypercar.
Above: the all-electric Rimac C Two hypercar.
The company claims the C Two produces 1408kW and 2300Nm, allowing it to accelerate from zero to 100km/h in under two seconds and making quicker than any existing Bugatti model.
It has a top speed of 412km/h and a battery range of 647km.
Customer deliveries were initially scheduled for late 2020, however have been pushed back to next year because of the coronavirus pandemic.
Earlier this year 2016 Formula One World Champion Nico Rosberg revealed that he had placed an order on the car.
CarAdvice has reached out to Bugatti and Rimac to verify the reports. This story will be updated if further information becomes available.