Fey is being eyed to play the female lead - one of only three human roles in the film - according to The Hollywood Reporter.
> 30 Rock cast finish filming after seven seasons - picture
If Fey signs, on she will join Ricky Gervais (Extras) and Ty Burrell (Modern Family).
The Muppets sequel will chronicle the furry characters created by Jim Henson and their adventures abroad in Europe.
The follow up to the 2011 instalment will be directed once again by James Bobin (Flight of the Conchords).
Fey is scheduled to host the 70th Annual Golden Globes with Amy Poehler (Parks and Recreation) this Sunday.
The actress will next be seen in Admission with Paul Rudd.
Admission is set for release in US cinemas on March 8, 2013. A UK release date has not yet been revealed.
Watch a clip featuring Tina Fey in Admission below: