The Rugby Paper are reporting controversial Toulon owner Mourad Boudjellal is ready to hand Faletau's current employers Bath a whopping €500,000 transfer fee to buy the 70-times capped Wales No.8 out of the final year of his contract in the west country.
And the three-times kings of Europe are also said to be ready to offer the 27-year-old an eye-popping €1m a year deal to make the move across the Channel to the Stade Felix Mayol.
Faletau picked up a knee injury against Toulon on Saturday in their 24-20 defeat to the French outfit that will rule him out of next Saturday's rematch at The Rec.
The Dragons are also said to be interested in bringing Faletau back to Newport and form a back-row partnership with Ross Moriarty.
They are willing to make him the highest paid player in Wales, but won’t be able to match the wages being offered in France.
Wales and Lions star Faletau retains strong links with his former club and was at Rodney Parade this month to watch the thrilling 32-32 draw with star-studded Ulster in the Guinness PRO14.
Sources maintain Faletau is interested in rejoining the Dragons, who he left last year to link up with Bath.
But they would have to pay a transfer fee if they are to get him this summer unless the west country club were willing to part with him, which is an obvious stumbling block.
“Taulupe didn’t really want to leave the Dragons. If the then regime had offered him £20,000 more a year he would have stayed,” claimed an insider at the region.
“His situation is akin to when Johnny Sexton left Leinster for France. Johnny didn’t really want to join Racing Metro and couldn’t get back quick enough to Leinster when the opportunity arose.
“As a number of leading Welsh players have also found in the past, the grass isn’t always greener outside Wales.”
Having already played over 70 times for his country, Faletau would be still eligible for Wales should he move to France where he would join Toulon-bound Ospreys and Wales scrum-half Rhys Webb.