The luxury goods company has its headquarters in next year's host city but cannot confirm the deal as of yet.

"A contract is under discussion and as with all discussions, could wind up with a signature or not," said Arnault at the LMVH annual meeting, as reported by FMT.

LVMH could join the group of five premium sponsors for Paris 2024, which include mobile network operator Orange, retailer Carrefour, banking group BPCE, electric utility company EDF, and pharmaceutical group Sanofi.

"We will continue to negotiate, it could take a couple of weeks to six months," said LVMH corporate image director Antoine Arnault, as reported by Le Monde.

The Paris 2024 Organising Committee's budget was €4.4 billion (£3.9 billion/$4.8 billion) by the end of 2022, and it must be covered by a contribution from the International Olympic Committee, ticket sales, and sponsorship contracts.

TotalEnergies withdrew its sponsorship in 2019 and has left the OC still looking to replace it and contribute to the sponsorship budget which is estimated at €1.15 billion (£1 billion/$1.2 billion).

The new partner must be willing to pay more than €100 million (£88.5 million/$110 million) and considering LVMH generated a net income of €14.1 billion (£12.5 billion/$15.5 billion) last year it is considered an ideal choice.

LVMH has the cards in its hands and as a result is said to be demanding in the contract talks.

"A negotiation is always complex, especially with foreign organisations or companies," Antoine Arnault said.

"There are a lot of legal issues and discussions about everything."

A handful of LVMH brands are said to be involved, including Louis Vuitton.

However, the group's watch and jewellery brands likely won't be included due to the Swatch Group's Omega being the official timekeeper of the Games until Brisbane 2032.