The swap would have allegedly seen Navalny and two US citizens freed by Russia, in exchange for a Russian man serving a life sentence in Germany.
Alexei Navalny was set to be freed as part of a prisoner swap when he died, one of his allies has said,
The Russian opposition leader died at a penal colony within the Artic Circle while serving a 19-year prison sentence on charges his supporters said were politically motivated.
His death was announced on 16 February.
An ally of Mr Navalny has said the prisoner-swap talks were in their “final stages” when he died.
In a video posted on the late Kremlin critic’s YouTube channel, Maria Pevchikh, who lives outside Russia, said: “Alexei Navalny could have been sitting here now, today. It’s not a figure of speech.”
Ms Pevchikh said she received confirmation about the talks just one day before Mr Navalny’s death was announced.
She said Putin “wouldn’t tolerate” Navalny being freed and decided to “get rid of the bargaining chip”. She has not offered evidence to back up the allegation.
The circumstances of Mr Navalny’s death remain unclear – but several world leaders, including Joe Biden, have directly blamed Vladimir Putin and the Russian government.
Mr Navalny’s widow Yulia Navalnaya has also pointed the finger at the Russian president, claiming her husband could have been poisoned with novichok.
The Kremlin has repeatedly denied any involvement in his death.
Ms Pevchikh said Mr Navalny and two US citizens held in Russia, whom she has not identified, were supposed to be swapped for Vadim Krasikov.
Krasikov is serving a life sentence in Germany for the 2019 killing of Zelimkhan “Tornike” Khangoshvili, a 40-year-old Georgian citizen of Chechen descent.
A Western official told Sky News partner NBC News: “No formal offer had been made, but early discussions involving an exchange for Navalny and US citizens were under way.”