According to The Hollywood Reporter, Elba met with writer and director Gunn, and negotiations have now begun in earnest.
Smith starred in David Ayer’s 2016 movie Suicide Squad alongside Jared Leto, Margot Robbie, Viola Davis, and Cara Delevingne.
Casting has yet to be confirmed for Guardians of the Galaxy director Gunn’s sequel.
While initial reports suggested that the new film would focus mainly on DC Extended Universe characters who didn’t appear in the original movie, Deadshot is now expected to make a return along with characters like Harley Quinn.
Elba’s recent projects include Fast & Furious Presents: Hobbs & Shaw and Luther. He’s set to release his new comedy Turn Up Charlie later in March on Netflix.