It appears that the two companies are moving closer to reaching an agreement that would bring Mario and friends to the movies in the near future.
The deal, according to a new report from the Wall Street Journal, has been in the works for more than a year.
Neither Nintendo nor Illusion is commenting on the apparent leak.
Nintendo is keen to keep some level of control over the film, and apparently Shigeru Miyamoto is likely to be attached as a producer.
Nintendo is reportedly in talks with Universal Studios to create an animated film starring everyone's favorite Italian plumber, Mario.
According to industry heads, Illumination has been in talks with Nintendo for over a year.
Since that debacle, Nintendo has been largely averse to licensing its characters for film, with their only theatrical outings being animated movies based on the Pokémon series.
This is of course not the first attempt to make a Mario and Luigi movie.
The film was a disaster both critically and commercially, and is often cited in discussions about the sad history of Hollywood's various video game adaptations.
The only feature-length movie that Mario and company have fostered comes in the way of the live-action Super Mario Brothers of 1993, which many people today often try to forget ever existed.