CNBC first reported the discussions on Monday citing sources familiar with the matter.
Although talks have taken place in the past few weeks they are no longer active.
But the move effectively puts up the for sale signs for Fox, following in the footsteps of the AT&T purchase of Time Warner and Discovery’s acquisition of Scripps.
US broadcast regulations mean that Disney would be unable to own two broadcast networks – it already has control of ABC – and antitrust laws would also keep Fox News and Fox Sports out of any deal.
But the deal would have included international businesses including Sky and Star and pay-basic channels National Geographic and FX.
Sky is already in play through the £11.7 billion bid for the broadcaster by 21st Century Fox.
Fox currently owns 39 per cent of the pay-TV network.
There has been no comment from Fox or Disney.