Reid, who abruptly left his post at Arista two weeks ago in light of financial losses, is reportedly in negotiations with Island Def Jam.
If Reid, who at Arista was responsible for the careers of Outkast and Pink, takes the job at Island Def Jam, he will replace Lyor Cohen, who left his chief executive spot last week for Time Warner Music.
At Arista, Reid replaced the legendary Clive Davis in a controversial shake-up four years ago that resulted in BMG, Arista's parent company, offering Davis his own label as a peace offering.
During his stint at Arista, Reid was known as a savvy hitmaker, but also as a big spender, which reportedly contributed to his dismissal two weeks ago.
Island Def Jam is known for hip-hop performers like Jay-Z and Public Enemy, though the label has also expanded its roster to include artists like Mariah Carey and Bon Jovi.