Mazda, which is plotting to break into the booming hybrid market, approached Toyota with the request for the parts. Negotiations are in the final stages, with an announcement expected soon.

Under the alliance, Toyota will provide batteries, motors, control units, and other components made by group autoparts manufacturers. The leading plan calls for Toyota to supply the components as a bundled hybrid system. On top of pocketing revenue from Mazda, Toyota expects to reduce costs for components used in its own hybrids by improving economies of scale.

The report says that Mazda will apply the Toyota components in midsize passenger vehicles. Mazda reportedly is targeting sales of 100,000 units a year.

Mazda developed hybrids with Ford in the past, but those were only sold on a trial basis.