Offloading part of Deutsche Asset Management on the stock market would be an uncomfortable moment for the group.
Bank insiders value the unit at around 6.0 billion euros ($6.4 billion), of which it might offer a quarter on the stock market, Handelsblatt continued, citing internal sources at Deutsche Bank.
The paper adds that a final decision has yet to be reached on the possible move.
Spokespeople for the bank were not immediately available for comment when contacted by AFP.
Offloading part of Deutsche Asset Management, which in September was overseeing around 715 billion euros, on the stock market would be an uncomfortable moment for the group.
Chief executive John Cryan labelled the unit "an essential component of our business model" in September, and it has continued to book reliable profits even as Deutsche has weathered severe headwinds in recent years.
But the bank needs to pay heavy fines and increase its capital to reassure regulators that it can withstand future financial shocks -- if possible without issuing more of its own shares.
As well as the increased regulation, higher capital requirements and historic low interest rates that all European banks have been faced with since the financial crisis, Deutsche is also entangled in thousands of legal cases worldwide.
The bank confirmed in mid-January that it had agreed $7.2 billion in fines and compensation with the US Department of Justice over its role in the subprime mortgage crisis.
Around 1.2 billion euros of the total will be reflected in its results for the fourth quarter of 2016, Deutsche said at the time.
The group is expected to present its annual results for last year on February 2.