The company, one of Europe's most heavily indebted telecoms operators, is in talks with creditors to lower the cost and extend the maturity of a 3 billion euro loan, the newspaper said, citing unnamed financial sources.
It is also studying paying off another 2 billion euros of debt with proceeds from the sale of its Czech business.
A Telefonica spokesman could not confirm the report.
The company sold a string of assets in 2013 aimed at reducing debt and improving its credit ratings.
(Reporting by Tracy Rucinski; Editing by Kenneth Maxwell)