A Next spokesman confirmed it has held conversations with the toy retailer, adding it was “not yet a done deal”.
The tie-up will allow Hamleys to target a wider range of customers, fitting in with its plans to open more standalone stores in the UK, with an opening at Glasgow’s St Enoch centre expected later this year.
An analyst said it would be a “sensible move” for Next. He said: “Hamleys is a good brand and everyone is familiar with it. And after Woolworths’ demise there is a big hole in the market for toys.”