The company said that it had initiated preliminary discussions with 21st Century Fox, but added that it had not progressed beyond this stage and no agreement had been reached on terms, value or transaction structure.
"There is no certainty that a transaction will occur," the company said in a statement on Monday morning. "Any potential agreement would be subject to external factors including the Sky Deutschland share price continuing to trade on an undisturbed basis."
The potential deal, which was initially reported by Bloomberg news agency, would consolidate the European pay-TV assets of American Australian magnate Rupert Murdoch. His family is the largest shareholder in 21st Century Fox, which is shareholder in BSkyB. Murdoch's company also owns a 55 percent stake in Sky Deutschland and is the 100 percent owner of Sky Italia.
21st Century Fox also moved to confirm the rumors on Monday, but stated that numerous internal discussions had been undertaken over the years with no agreement between the parties ever being reached.