The talks regarding a purchase, first reported by Sky News, occur only a year after Frasers acquired the brand.
Last year, Frasers Group paid £20 million for Missguided after the online apparel store went bankrupt.
Shein, which was created in China in 2008, is a global fast fashion behemoth.
Frasers Group and Shein have both been reached for comment.
According to Sky, the agreement will see Shein acquire Missguided’s brand and other intellectual property, while Frasers retains the head office.
Missguided, situated in Manchester, was launched in 2009 by Nitin Passi and has since grown to become one of the UK’s largest online fashion players.
However, due to supply chain issues, rising freight prices, and increased competition from rivals, it went into administration in May 2022, before being acquired by Frasers Group.
Frasers, which owns the Mike Ashley-founded Sports Direct company, has grown swiftly by acquiring troubled brands. Game, Evans Cycles, Jack Wills, and Sofa.com are just a few examples.
While Mike Ashley is no longer the CEO of Frasers, he still maintains a majority ownership in the company.
Shein, the clandestine Chinese brand outfitting Gen Z that now has its headquarters in Singapore, witnessed sales increase during the Covid epidemic as lockdowns led to an increase in internet shopping.
It was valued at roughly $66 billion earlier this year, which was lower than a previous valuation of around $100 billion.
It has been speculated that Shein will attempt to float its shares in the United States.
However, in May, a group of US congressmen demanded that Shein be investigated amid allegations that people from China’s predominantly Muslim Uyghur community were used as forced labor to create some of the clothing it sells.
