Founder of the fund Leon Black travelled to the country last week to conduct talks, according to a report in the Wall Street Journal.
Details of the deal were not disclosed but an unnamed source said that any deal would most probably be along the lines of Blackstone Group's sale of a stake of less than ten per cent to the Chinese government and that the share would not carry voting rights.
However, the source added that there is currently a gap between the two parties' perception of the value of the stake.
It is thought that the share sale could precede Apollo following the lead of other private equity firms such as Blackstone and Fortress in embarking on an initial public offering.
News that the two sides are in talks follows the Abu Dhabi government last year taking close to a 50 per cent stake in Apollo's investment fund AP Alternative Assets.