The British acts are said to be the first choices of the events organisers.
Joss Stone and Damon Albarn have also been touted to perform at the ceremony in July 2012.
"Coldplay are the biggest stadium rockers in Britain today, and their style of anthemic music would be perfect for the Olympics," a source told the Mirror.
"(The opening song) needs to be something inspirational. The hope is that they would perform at the opening ceremony, as well as produce a recording of the track, which could help fund good causes in British sport."
Coldplay are to play a number of major festivals this year, including Glastonbury and T in the Park.
The band are currently working on their fifth studio album.
Watch Coldplay's video for 'Viva La Vida' below: