Shares in the company rocketed almost 20 per cent on the news to close at $1.53 despite the market's flat session on Friday.
"AMP notes discussions on the proposal are at a very preliminary stage and there is no certainty that a transaction will eventuate,"the company said.
Ares is listed on the New York stock exchange and has about $US179 billion ($250 billion) funds under management.
AMP appointed a team of consultants and lawyers on September 2 to examine opportunities presented by third parties keen to buy AMP's assets. AMP,which has been beset by reputational damage this year,said it had received"significant interest"in its assets and businesses and would assess its options in a"considered and holistic manner".
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Sources familiar with the negotiations have said chief executive Francesco De Ferrari does not want to splinter the group and instead would prefer to stick to the company's three-year transformation strategy. Mr De Ferrari has previously said he considered the business undervalued.
The statement said AMP would also consider"continuing to pursue its three-year strategy,with a focus on maximising shareholder value".