The Los Angeles Times reported the Dodgers were talking with Torre.
Little managed the Dodgers in 2006 and 2007. Los Angeles tied for the National League West title in 2006 but was fourth this past season.
Torre left the Yankees after the team offered him a one-year incentives-laden contract. The team had made the playoffs in each of Torre's 12 seasons as manager. His 2,067 total managerial victories -- he also managed the New York Mets, Atlanta Braves and St. Louis Cardinals -- ranks eighth all time.
It also was reported that if Torre becomes manager, the Dodgers could sign free-agent Alex Rodriguez, who also left the Yankees.
Sources said Torre wants to choose his own coaches, among them Don Mattingly, and was negotiating the amount of money to be spent on them. The deal could be completed in the next day.
Little's resignation was announced by General Manager Ned Colletti on a conference call Tuesday afternoon.,