Insurance giant Aviva is close to finalising the sale of the RAC according to a report from Sky News.

The firm has been seeking a buyer for several months, as part of a larger restructuring, but has never publicly commented on the issue.

Earlier this month chief executive Mark Hodges, who has since resigned, said: 'We don't think it's in the interests of our shareholders to say anything.'

According to reports, the short-list of potential buyers has now been reduced to two of three private equity firms; BC Partners, Carlyle Group and Clayton Dubilier & Rice.

It is thought that a successful deal would be reached at between �600m and �900m.

Aviva has owned the roadside assistance company since 2005 when it made a successul takeover bid of �1.1bn.

Aviva could not be reached for comment at the time of publication.