Final discussion with leading stakeholders, including the British government, which holds a 30 percent stake in Royal Mail, were still to take place, but it was "likely" that Greene would be awarded a 5 percent increase to her 498,000 pounds ($737,488) base salary, Sky News said. (http://bit.ly/1ahQDVw)

It was not clear if Royal Mail would seek the consent of the British government on the pay raise, which sold off 60 percent stake in the company last year, although the directors of the company were determined to ward off any resistance that may keep the compensation of its chief executive at current levels for the fifth consecutive year, the website said.

Royal Mail could not be reached for comment outside regular business hours.

Greene, whose base salary has stayed at 498,000 pounds since she joined Royal Mail in July 2010, is widely credited with transforming the postal firm from a loss-maker into a profitable FTSE 100-listed company, via cost cuts and a push towards a bigger slice of the fast growing parcels market. [ID:nL6N0NS3OE]

($1 = 0.6753 pound)

(Reporting by Ankush Sharma in Bengaluru; Editing by David Gregorio)