The consortium has approached Whittard with a bid worth an estimated£21.5 million, according to press reports.
Baugur, which has shown an interest in Whittard before, is expected to make a formal offer for the retailer before Christmas. If successful, a deal is likely to result in the merging of Whittard with nuts and spices retailer Julian Graves.
The announcement comes just months after talks between Whittard and potential suitors broke down. The group confirmed in July that it was in takeover negotiations, but announced in September that they had collapsed, following poor trading.