According to Calcalist the talks started six months ago and have seen the two companies sign a terms sheet.
This will be the second time that Waze and Facebook have come together.
The pair partnered in October 2012 after the startup released its updated version allowing users to share their drives with their friends on Facebook.
The startup, which has more than 45 million users, uses satellite signals from member smartphones to generate maps and traffic data enabling its members to get real time traffic information.
Should the deal go through the startup will be the third that Facebook has acquired from the country after Snaptu in 2011 for US$70 million and Face.com last year for US$60 million.
The startup has not yet denied or backed the reports.