The French bank is weighing up alternative options for the €151bn asset manager including a potential sale, merger or retaining the unit.
While no final decisions have been made, the sources said a process may commence in the final quarter of the year.
SocGen declined to comment on the report.
The is the latest in a string of potential sales in the asset management industry.
In April, it was reported Swiss bank UBS was considering options for its asset management unit including a potential move to acquire DWS.
While reports emerged JP Morgan was lining up WisdomTree Investments as an acquisition target towards the end of last year.
Any sale would have major ramifications for the European ETF industry. Lyxor is currently the continent’s third largest ETF provider with €71bn assets under management (AUM) behind BlackRock and DWS.