The TV talk show host, 51, and her wife, Michelle Rounds, are under contract to purchase the Australian star's home on Jupiter Island in Palm Beach County after making an all cash offer of $5.6 million.
The couple were originally looking for a property to purchase for Rosie's mother, Roseann, but fell in love with the 'Grease' star's home after viewing it and are now planning to renovate it for themselves and their children, according to GossipExtra.
Olivia's husband, John Easterling, confirmed the deal is in the works but added: "Nothing's done until it's signed, sealed and delivered."
Rosie, who has four children from previous relationships, sold her Miami, Florida, mansion in June for $16.5 million.
Last year the comedian credited Michelle, with whom she adopted a baby girl, Dakota, last January, for saving her life after she had a heart attack in August 2012.
She previously revealed: "She gave me an aspirin, thank God! The doctor [said it was] vital to me staying [alive] through the night, because I didn't go to the hospital right away and I should've.
"I'm thinking the kids, 'Where are the kids going to go? Let's just put some ice on me. I probably just pulled a muscle.' "
She also said: "It's been a rough year, I can tell you that. I feel a lot better. I think that I became educated after having a heart attack... I wasn't really prepared or ready and even while I was having a heart attack, I kept going, 'You think this could be a heart attack?' "