Italian confectioner Ferrero and two other bidders are left in the race to buy Arnott's biscuits and other international assets put on sale by Campbell Soup, the Australian Financial Review reported.
The newspaper also said the deadline for submitting binding bids was 20 March, adding the deal could be worth $3 billion (€2.63 billion).
Ferrero, which started an aggressive acquisition campaign four years ago, is vying with Oreo cookies maker Mondelez International Inc and a consortium comprising private equity firms KKR and Bain Capital, the newspaper said.
Ferrero and Mondelez are seen as front-runners as it would be easier for them to reap synergies from the acquisition, the paper said.
Ferrero, Mondelez and KKR declined to comment on the report.
Campbell Soup and Bain Capital did not reply to Reuters requests for comment.