The Daily Deal says Brazil's second largest financial group Banco Itau SA is negotiating to buy the Brazilian arm of Fiat SpA's vehicle financing division to boost its share of the specialised loan business.

Banco Fiat, the Italian car maker's vehicle financing arm and a unit of Fidis SpA, has $US1.3 billion in assets and a $1 billion vehicle financing loan portfolio.

The report said a price could not be determined, but it noted that Ford, the fourth-largest vehicle seller in Brazil, sold its Brazilian vehicle financing unit earlier this year for $434 million.

Fiat Automoveis, the Brazilian subsidiary of Fiat, is the top selling car maker in Brazil, the report said.