But executives from ABC, which broadcasts the Oscars, are not happy about the choice, the paper says. The reason? Fallon's late-night talk show, Late Night With Jimmy Fallon, which is also produced by Michaels, airs on rival network NBC.
The network, however, does not have the power to influence the decision of who hosts the show, the Times reports.
A spokeswoman from the academy denied that the talks were taking place and ABC's parent company, Disney, declined to comment, according to the Times.
Academy President Tom Sherak's term ended on Tuesday, and he was replaced by Hawk Koch. Koch reportedly said his first priority as president is to find an Oscar host, and Sherak told Variety that he had been trying to negotiate a deal to sign a host, but "stopped all negotiations" when he couldn't finalize a deal before Tuesday.
Fallon's last awards show hosting gig was for the 2010 Emmys.
The 85th Academy Awards will take place Sunday, Feb. 24.
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