"We can confirm that we have been approached by the (Phones 4U) administrator and are in discussions about the stores," an EE spokesman said, declining to comment on the number of stores that EE would be looking to take over.

A source close to the company said EE could takeover "dozens" of Phones 4U stores, while the Sunday Times said it was looking at more than 60.

Rival Dixons Carphone is also in talks to buy some Phones 4u stores, which could mean that more than 200 stores could be kept in operation on the high street, the Financial Times reported. (http://on.ft.com/1mwUu6K)

Dixons Carphone was not immediately available for comment.

Mobile phone retailer Phones 4U, which has 550 standalone stores and 5,596 employees, fell into administration after EE joined Vodafone in not renewing its network agreement.

On Friday, Phones 4U's administrators PwC said Vodafone UK had agreed to take on 140 of its stores, saving 887 jobs, while a further 628 staff would be made redundant.

(Reporting by Silvia Antonioli and Supriya Kurane; Editing by Mark Potter and William Hardy)

Stocks treated in this article : Dixons Carphone PLC, Vodafone Group plc