Lloyds Banking Group is set to sell the 632 branches, known as project Verde, for less than originally hopes, the Daily Telegraph reports.
The state-backed lender has to sell the branches due to European Union state aid requirements.
The Telegraph reports the bank had been looking to sell the branches for between £1.5bn and £2bn but is now considering cutting the price due to tough trading conditions for banks.
It said the Lloyds board will meet on Wednesday, with the sale the top item on the agenda. A statement is expected within the next ten days.
The report said Co-op Group is still the preferred buyer of the business, with new banking start-up NBNK also in talks with Lloyds.
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