The 144-store discount retailer has been put up for sale by German retailer Tengelmann and Tesco has lodged the highest bid for the chain, according to local reports.
Other bidders include Penny Market, Interspar and Germany's Schwarz, which operates Lidl, the report adds.
Tesco already has 93 stores in the Czech Republic, having entered the market in 1996. It has built up its portfolio through acquisitions with French retailer Carrefour and German retailer Edeka.
Last month, Tesco CEO Terry Leahy said the retailer had some “pretty ambitious international targets for growth”. He admitted Tesco was considering a move into India and also refused to rule out possible expansion into Russia.
“We are at the threshold of becoming one of the few successful international retailers,” he added.