The French carmaker said on Monday that it would "examine with interest" a proposal by Fiat Chrysler that would give its shareholders 50% of the shares in a combined company with an annual vehicle sales of 8.7 million euros.
"These discussions have made it clear that a broader collaboration through a combination would significantly improve capital efficiency and speed of product development," said the Italian-American company.
Fiat Chrysler owns brands including Jeep, Dodge, Alfa Romeo and Maserati. One of the most important markets is North America, where Renault has no significant presence.
The proposal is the latest example of established automakers looking for partnerships to share the costs of developing new technologies, including electric vehicles and autonomous propulsion systems.
Fiat Chrysler said a merger with Renault would lead to annual cost savings of more than 5 billion euros. The company announced that due to a merger no plants would be closed.
Renault holds 43.5% of Nissan, while Nissan owns 15% of Renault. The French automaker, which sells fewer cars than its Japanese counterpart, had urged it to merge the companies, but was rejected.
While the relationship between Nissan and Renault was strained after Ghosn's arrest, Fiat Chrysler would increase the Alliance's annual rate of vehicle sales to 15 million.
Renault and Fiat Chrysler both said on Monday that a merger would benefit the alliance. Nissan declined to comment. Representatives of Mitsubishi Motors were not immediately available.
Regulators are likely to question a deal between Fiat Chrysler and Renault. The French government, which owns 15% of Renault, announced Monday that it would support a merger.
Sherisse Pham and Saskya Vandoorne contributed to the coverage.