The report said the company will close its plasma screen factory in Amagasaki and put it up for sale next year.
A Panasonic statement said nothing had been decided but discussions about business strategy were ongoing.
Panasonic's plasma TV division made huge losses in recent years and other electronics companies, such as Hitachi and Pioneer, have already pulled out of the sector.
In its last financial year, the division made a loss of 754 billion yen following sluggish demand mainly in Japan.
The Japanese electronics industry is going through tough times at present on account of strong Korean competition.
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