Sources say IBM is looking for up to 8,000 square metres of space in the CBD, Southbank and St Kilda Road precinct, to replace about 6,500 square metres it currently occupies at 459 Collins Street.
An additional 1,500 square metres of space is required by IBM for a new project, sources say.
Jones Lang LaSalle director corporate solutions Michael Greene confirmed the leasing requirement when contacted by The Age, but declined to elaborate on the terms, including the rent IBM is prepared to pay.
About two years ago, IBM renewed its lease at 60 City Road Southbank, where it also has naming rights. At about the same time, IBM also subleased about 3,300 square metres from the Australian Wheat Board, at 380 LaTrobe Street.