The report, citing an interview with Oracle's chief executive officer, Larry Ellison, said the move would redraw the software landscape and open a new front in Oracle's long rivalry with U.S. rival Microsoft.
It said Ellison told the newspaper that Oracle wanted to sell a full range of software that, like Microsoft, included both operating system and applications.
"I'd like to have a complete stack," Ellison was quoted as saying.
"We're missing an operating system. You could argue that it makes a lot of sense for us to look at distributing and supporting Linux."
The report said that like IBM, Oracle has counted on Linux--whose code is open to anyone to view and adapt--to act as a counterweight to Microsoft's Windows, which has expanded rapidly from desktop PCs into corporate IT systems.
As part of a recent study of, Ellison told the newspaper, Oracle had considered buying Novell, which is the biggest distributor of Linux.