The Royal Bank of Scotland is set to announce its plan to sell a stake portion in Citizens Financial Group Inc., newspaper Telegraph said.

Citizen, a retail bank in based in Providence, Rhode Island, is expected to gain more than 8 billion pounds for RBS, which is the largest lender backed by United Kingdom's government.

Facing regulatory pressure to solidify balance sheet, RBS was anticipated to look for initial public offering (IPO) after reporting full-year results, an anonymous source cited in the newspaper.

The lender is also expected to spin off up to 25% stake in the next couple of years, the newspaper said. RBS may be also open to offers from potential buyers aiming to get full stake, notably the Canadian bank TD Bank.

Both the UK Financial Investments and the Financial Services Authority have provided support to RBS.

Spokesman at RBS declined to comment on the matter.