Sources told The Wall Street Journal that one potential hangup on the deal would be convincing Nintendo executives that they have creative control over the project.
The 32-year-old Super Mario Brothers video game series and its spin-offs have sold more than 330 million units.
Mario might be getting another shot at the big screen.
The 1993 version of Super Mario Bros. has become a cult classic, but it flopped so bad in theaters it made less than half of its budget back. Illumination is the company behind Despicable Me - which foisted Minions on the world - while Universal Pictures remains one of the largest film studios in the world. But the facts are that series never happened.
Potentially exciting news for fans of the Super Smash Bros. franchise as Nintendo has filed for a new Super Smash Bros. logo trademark.
First debuting in1985, the videogame followed a mustachioed plumber, Mario, and his lanky brother, Luigi, in their quest to save Princess Peach from a very angry villain Bowser. Nintendo has previously expressed its desire to make movies, as just last year the company said that it would like to release a film within the next three years.
Mario's creator, Shigeru Miyamoto has apparently been involved in the talks, and will likely serve as producer on the film if and when it's made.