According to a report in the Lettre de l'Expansion newsletter, which has subsequently been carried by AFX Europe, PPR is looking to sell the entire YSL division, which also includes branded clothing lines.
However, the report said that Estee Lauder is only interested in the YSL perfumes and other related products, as the clothing and accessories lines would not be a good fit in its portfolio.
Estee Lauder said it refused to comment on what it described as being 'market rumours', although it made no attempts to deny the report.
Currently the YSL Beauty division includes a range of men's and women's fragrances, together with a make-up line and a skin care line.
The portfolio includes some of the best known perfume brands, with women's fragrances including YSL Paris, Opium, Baby Doll and Y; and the men's perfume range including names such as Kouros, Yves Saint Laurent M7, Jazz and Rive Gauche Pour Homme.
The make-up range includes comprehensive product lines for lips, nails, eyes and complexion, while the skin care range includes product lines such as Pure, Hydra Protect, Anti Ageing and Body.
Estee Lauder is well placed to make further acquisitions at the present moment, having reported in April that its third quarter net sales had increased 8 per cent to reach $1.54 billion, with fragrance sales increasing 12 per cent to reach $228.7 million.
Estee Lauder recently bought in top designer Tom Ford to launch a new line of beauty products for the company. Ford had previously been the designer for PPR's Gucci and Yves Saint Laurent divisions.