Luxury brand Hermes is set to take the lease at Sydney's Trust Building.
The building at 155-159 King Street is on the corner of Castlereagh Street.
Dior's flagship store sits across the road, as do the Chanel and Bulgari stores.
The Australian Financial Review writes Hermes has pipped another luxury brand, Valentino, for the multiple-floor space
The potential deal would see Hermes expand its retail footprint beyond its current single-floor space a block away at the corner of Castlereagh and Pitt streets.
Another diagonal corner is occupied by the MLC Centre escalators which are set to be replaced with retail space.