The Sunday Times reported that the independent Northampton-based outfit has appointed UK investment bank JPMorgan Cazenove to consider the initial public offering.
Without naming the source of the information, the newspaper said the floatation could value Cosworth - supplying engines in formula one to Williams, HRT and Virgin - at more than $400 million.
Ford sold Cosworth to US investors Gerald Forsythe and Kevin Kalkhoven in 2004.
Also rumoured at Istanbul Park on Sunday was that troubled Williams is considering switching to Renault power for 2012.
Renault Sport F1, currently supplying the Lotus Renault, Team Lotus and Red Bull teams, said recently it has the capacity to equip a fourth team.