The New York Post, which is owned by News Corp, is reporting a source as saying that Kotick's group is in "final talks" over a deal for the struggling social network.
The source said that Kotick's involvement in the venture is personal and nothing to do with video games publisher Activision Blizzard "at this stage".
Under the terms being discussed, News Corp would retain an equity stake in MySpace, possibly of about 20%, but the finer details of the deal have not yet been confirmed.
In March, it emerged that Rupert Murdoch's media giant had hired investment bank Allen & Co to evaluate strategic options for MySpace, including a possible sale, spinoff or partnership deal.
News Corp acquired MySpace for $580m (£363m) in July 2005, when it was among the world's leading social networks. However, the site has since suffered declining user figures and fallen well behind the likes of Facebook and Twitter.
Sources initially suggested that online music video giant Vevo had been approached about acquiring MySpace, under the arrangement of News Corp retaining a minority stake.
However, Vevo was understood to be just one of several parties interested in MySpace, and it now appears Kotick's consortium has swooped in to seal the deal.