Sony Computer Entertainment America is in discussions with Sega to provide classic Dreamcast games to PlayStation 3 users.
Industry website MCVUK.com reported that Sony is considering signing a dedicated long-term exclusivity deal with Sega for the titles, in return for offering additional marketing support.
If the deal is completed, PlayStation 3 gamers would be able to download the Dreamcast titles digitally, through the PlayStation Network.
Sony is currently cherry-picking its preferred games which it would like to appear on the network and MCVUK.com reported that it is possible that Microsoft may snap up other titles to appear on its Live Arcade and Virtual Console.
The gaming website also reported that Sony was looking to bring the entire back catalogue of PlayStation 2 games to the PlayStation 3 network, as the trend of retro gaming continues to grow.
Some of the Dreamcast games which may appear through the download scheme could include favourites such as Sonic Adventure 2, Jet Grind Radio, Shenmue and Soul Calibur.