Hyundai is interested in securing access to Chrysler's dealer network in the United States, the Sunday Times said.
A Hyundai Motor spokesman in Seoul denied the report.
Automotive News reported Friday that General Motors is in preliminary talks to buy Chrysler or strike a strategic alliance with the rival automaker.
JPMorgan is advising on the future of Chrysler and will send information memorandums to a number of potential suitors, including General Motors and Hyundai, as early as this week.
The Wall Street Journal reported on its Web site Sunday that it has received "several expressions of interest from around the world" for Chrysler.
The newspaper cited two people close to the situation for the report, but did not name the potential suitors for the U.S. automaker.
Last week, DaimlerChrysler said it would cut 13,000 jobs in North America and indicated it could sell or spin off the unit, which it bought nine years ago.