The celebrity astrologer is said to have been approached by officials from the Mediterranean island after they saw his performances in BBC One's Strictly Come Dancing.
However, he is allegedly hoping to represent the UK instead.
"He was thrilled but a bit perplexed to be asked to represent Malta as he has no link to the country," a source told The Sun.
"The only Maltesers he knows are in a box of chocolates. But he was really flattered.
"The premise would be Russell singing and then breaking off into a dance with Strictly partner Flavia."
Strictly Come Dancing backing singer Hayley Sanderson has written a song for Grant for a possible UK entry, and has reportedly held preliminary talks with the BBC.
Grant was the seventh celebrity to be voted out of this year's competition.
> Russell Grant: "I had to rediscover my bliss"