It means Lee could potentially return to the field only a few months after calling time on his professional career, though the Test quick retired from the international game in 2012.
If it comes to fruition, the Cricket All Stars League could affect some domestic Twenty20 competitions such as the BBL and Indian Premier League, which often include former international cricketers.
Lee played in last summer's Big Bash League along with Flintoff and Kallis.
Under the reported proposal, a series of matches will be held around the world over a three-and-a-half-year period, with the US to host the first series in September.
New York, Los Angeles and Chicago are understood to be the leading contenders to hold matches.
The news follows a report two weeks ago claiming Australian stars Michael Clarke and David Warner were being targeted by an Indian conglomerate keen to offer them $50 million contracts to play in a new rebel Twenty20 league.
Essel Group, owned by millionaire media mogul Subhash Chandra confirmed its ambitions to launch an unnamed cricket venture, understood to be a new global Twenty20 tournament similar to Kerry Packer's creation of World Series Cricket.
The group, which was behind the now-defunct Indian Cricket League (ICL), also reportedly wants to create a breakaway world governing body for the sport, prompting the ICC to investigate.
CA chairman Wally Edwards dismissed the report as "highly speculative".
-AAP
