Japan's NEC Corp. has confirmed media reports that it is making negotiations for the sale of its troubled mobile phone unit to personal computer venture partner Lenovo Group Ltd., said a source close to the matter.

After 2 years of incurring business losses, NEC decided to strip its mobile business, which it described as a vital part of its operations, in a bid to purse profitability and growth.

NEC responded to the media report by making a statement through Tokyo Stock Exchange that they have been making consideration of possible ways to bolster the competitiveness of their mobile phone business in response to the rapidly changing market.

Japanese phone companies have been struggling to get market share overseas as larger firms Samsung Electronics Co. Ltd. and Apple Inc. continue to dominate.

Officials in Lenovo were not available to comment on the matter.