The band split in 1987 after five years together and the members went on to enjoy solo careers.
They have previously refused to regroup - but a massive pay offer looks set to change their minds, according to The Sun.
The former band members have allegedly been offered the opportunity to reform for the Coachella Valley Music and Arts Festival in California next year - despite former frontman Morrissey previously turning down a GBP2.8 million offer to perform at the event.
A source tells the publication, "It has looked impossible in the past but suddenly it all looks like it could happen. The buzz around the people who used to work for the band is they could play Coachella for a ludicrous amount of money.
"It's closer than it ever has been. The split was a messy affair, but time's a healer."