Both clubs have struggled in attack during the first half of 2022.
To date, the Bulldogs sit last on the NRL with the competition's worst attacking record, while the Dragons, who have managed five wins, are fourth-last when it comes to total points scored, but manage to sit 11th on the table with a handful of wins restoring some confidence.
The Sydney Morning Herald are reporting though that the two clubs could look at the player swap to spark their respective struggling clubs back to life.
Sullivan has struggled to get a run in the Dragons side this year. He has played a handful of games as a utility option, but now with Andrew McCullough back at hooker, Moses Mbye has reverted to the bench role in jersey number 14.
Flanagan, on the other hand, has come in as Canterbury's halfback, but failed to inspire his side to any great heights playing alongside Matt Burton in the inexperienced halves combination.
Complicating matters is the fact Kyle's dad, Shane, is the current head of recruitment for the Dragons, but has also put his hand up for the vacant Bulldogs job if the club elects to pursue him.
He could well take Flanagan with him though, who is reportedly frustrated by a lack of playing time, currently caught behind fellow young gun Talatau Amone and Ben Hunt, who are both on contract until the end of next year.
Sullivan has recently re-signed with the club however, indicating he could also yet see out the long-term deal, however, talk persists that Hunt could extend his time at the joint venture.
It's also unclear how well a Sullivan-Burton combination would work at the Bulldogs, or whether Flanagan would be able to take a spot away from Amone in the Dragons line up.
Amone has previously been linked with a move to the Dolphins, however, would still require a release from the Red V to move away from Wollongong.