U.S.-based Lone Star had been examining an offer for Quintain for several months as it sees potential in the London-based company's land around Wembley Stadium, Sky News said, citing a source. (http://bit.ly/1IpEZl6)

The deal, which is close to being agreed upon, could be confirmed as soon as Wednesday, Sky News reported.

Morgan Stanley is advising Lone Star, while JPMorgan Chase & Co and Lazard are acting as financial advisers for Quintain, the report said.

Lone Star and Quintain could not immediately be reached for comment.

($1 = 0.6408 pounds)

(Reporting by Ismail Shakil in Bengaluru; Editing by Lisa Shumaker)