Barclays has re-entered negotiations with Brookfield Asset Management about a deal to sell a stake in its British merchant payments business to the Canadian asset manager, Sky News reported on Tuesday.

A deal would see Brookfield acquiring a majority stake in the bank's merchant acquiring arm while providing the capital needed to fund its growth, Sky News learns.

A deal would make Brookfield Asset Management a majority stakeholder in Barclays’ merchant payments business, while providing the capital needed to fund the unit’s growth, a Sky News report said