Pirelli is set to agree to sell 39 to 40% of its tyre business to a group of banks at EUR7.4 per share, a source close to the situation told a news agency on Wednesday.

"They are working on the details. If they manage to work them out, it is possible that the operation goes to Pirelli's board tomorrow," the source told Reuters.

Pirelli reportedly declined to comment.

Since cancelling an initial public offering for the business last month, Pirelli has been studying several options for the minority stake, Reuters noted - the price mentioned by its source is at the low end of the offering's price range of EUR7.4 to EUR9.0 per share.

The sale of the minority stake would raise more than EUR600m for Pirelli and would help it buy out shareholders in Olimpia, the holding company through which it controls Telecom Italia, Italy's largest telecommunications operator, the report said.

According to Reuters, Italian newspaper Il Sole 24 Ore has cited banks Mediobanca, Goldman Sachs, Banca Intesa, Capitalia and JP Morgan as being interested in buying the stake.