Chinese firm wants to make apps downloadable on the underground in time for the 2012 London Olympics.
The Sunday Times has reported that Huawei will fund the network as a gesture of goodwill and also, presumably, to get a footprint into the UK and some ongoing maintenance contracts.
The deal would see Huawei install mobile transmitters along the ceilings of tunnels so commuters can make and receive calls on the tube.
The Sunday Times also said that Vodafone and O2 have agreed to pay for installation work.
London mayor Boris Johnson has previously stated that he would be willing to approve mobile reception in the tube as long as there was so cost to the tax payer.
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