Global tech giant Dell Inc. is reportedly planning to buy data storage company EMC Corp in an all-cash deal that could become one of the biggest acquisitions in the technology sector.

Dell is also holding discussions with banks to fund the deal, a person familiar with the development, told Reuters.

"The terms of the negotiations were not immediately known," the report said.

EMC, which has a market capitalisation of nearly $50 billion, saw its profit decline in the recent quarters. Revenue growth in the company's core data storage business almost remained flat in the past two years.

The deal could enable Dell, the world's third-largest maker of personal computers, to expand its footprint "among corporate clients".

The company's founder, Michael Dell, is currently trying to transform it into full-fledged enterprise computing services provider. Dell became a private company in 2013 after Michael Dell and private equity firm Silver Lake went for a "leveraged buyout" of the company in a deal worth $25 billion, Ars Technica reported.

On the other hand, EMC is being pressurised by activist investor and shareholder Elliott Management to sell its 80% stake in VMware. Elliott Management holds 2% stake in EMC.

In August, a report by technology news website Re/code said that EMC was considering a deal "under which it would be acquired by VMware, which has a market cap of about $35 billion."

In September last year, The Wall Street Journal reported that EMC was in talks with Dell and Hewlett Packard.