The move will likely complement Amazon's effort to double down on sports programming through its Prime Video service, a key channel to attract consumers to its shopping platform.
It was not clear when Amazon would roll out the sports app and whether it would go through with the plan, according to the report.
Amazon already owns the rights to stream games including National Football League's Thursday Night Football franchise and Premier League soccer matches in the UK, setting it up to better compete with sports streaming leader Walt Disney Co.
Sports remains one of the biggest attractions for live viewing as U.S. audiences increasingly switch from pay TV subscriptions to streaming apps.
Amazon did not immediately respond to a Reuters request for comment.
The company has been reviewing unprofitable business units and has laid off some staff to cover rising costs and a demand downturn as inflation-wary consumers and businesses spend less.
