The talks between the clubs are not yet considered serious, and Millwood is one of several options that the Orioles are pursuing.
Texas, thanks in part to the development of Scott Feldman, Tommy Hunter, Derek Holland and Neftali Feliz, finds itself in the rare position of being able being able to consider trading starting pitching.
One rumor has Texas considering a trade of Millwood in an effort to clear money off the payroll to sign free agent slugger Jermaine Dye.
However, with the team ownership issue still an albatross around the neck of the franchise, most believe the Rangers would only consider moving Millwood to eliminate or reduce their $12 million commitment to him in 2010.
Millwood went 13-10 with a 3.67 ERA in 31 starts last season.
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