Due diligence is underway after a term sheet was signed, Calcalist said, adding that talks began six months ago.
Waze has tripled its users to 45 million in the last year and added 1.5 million users in March alone. An app update last October let users share their drive with Facebook friends.
Earlier this year it was rumored that Apple was also interested in acquiring Waze and had placed an initial half billion dollar offer on the table.
You can download Waze from the App Store for free.