Morrisons is reportedly nearing a deal to sell its 160 M-Local stores.
The Telegraph reported this weekend that the supermarket giant was looking to call time on its venture into smaller convenience stores.
It was in "advanced talks" with investment firm Greybull Capital, which will provide tens of millions of pounds to fund the takeover and provide the stores with working capital, the newspaper reported.
Morrisons declined to comment on the story.
Chairman Andy Higginson said that more than 30% of its convenience stores had not worked. Earlier this year, the UK's fourth largest supermarket confirmed plans to shut more than 20 M Local stores.
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Shares in the supermarket dipped by around 1.5% in early trading.