(Reuters) - Canadian satellite company MacDonald Dettwiler and Associates Ltd (>> Macdonald Dettwiler & Associates Ltd) is in talks to buy U.S.-based DigitalGlobe Inc (>> DigitalGlobe Inc) for about $2 billion (1.61 billion pounds)to $3 billion (2.41 billion pounds), Dow Jones reported, citing sources.

Financial conditions of the deal couldn't be learned and it is also possible that talks might fall apart before a decision is reached, the Dow Jones report said.

Shares of satellite imagery provider DigitalGlobe were up 20 percent at a near three-year high of $35.90. The company has a market value of about $1.84 billion.

DigitalGlobe's services are used by companies such Facebook Inc (>> Facebook Inc), Uber Technologies Inc [UBER.UL] and U.S. defence contractor Harris Corp (>> Harris Corporation).

MacDonald Dettwiler's shares were down 1.5 percent at C$72.31 on the Toronto Stock Exchange.

(Reporting by Laharee Chatterjee in Bengaluru; Editing by Maju Samuel)