The investment banker is planning to take advantage of a planned rights issue from the bank, which is taking place in a capital-raising exercise.
Mr Flowers, who owns investors JC Flowers, currently holds a 26.61 stake in the bank - with the federations of Hamburg and Schleswig-Holstein holding 35.38 per cent and 19.96 per cent apiece.
It is understood that both states are opposed to the planned purchases - and plan to exercise their subscription rights over the new shares, sources close to the situation told the newspaper.
Nevertheless, lending banks in Schleswig-Holstein are also anticipated to sell their shares on to Mr Flowers, increasing his stake.
Commenting, the head of HSH Nordbank said that the terms of the capital increase were still under discussion, Thomson Financial reports.