Apple could announce the plans as soon as Tuesday, the All Things Digital blog said, citing unnamed sources.
The news comes after Google announced plans in November to buy AdMob, another mobile ad provider, for US$750 million. Both Quattro and AdMob focus on in-application and other types of mobile ads, which are displayed on smartphones like the iPhone or those that run Google's Android operating system.
Google CEO Eric Schmidt last year resigned from Apple's board of directors over concerns that Google was increasingly competing with Apple in its main businesses, including smartphones.
U.S. antitrust regulators are examining Google's buyout of AdMob and consumer groups have urged them to block it.
