Plans to fully or partly sell-off the Royal Mail have long been mooted and the new Coalition Government wants to accelerate the privatisation initiative.
Proposals include a full privatisation accompanied by the setting up of a John-Lewis style trust in a form whereby postmen could own shares and receive dividends.
It is believed this plan could incentivise the workforce and placate the Communication Workers Union. The Royal Mail has seen a series of strikes in the past 12 months.
The proposals would privatise the Royal Mail but keep the Post Office under government control.
The Royal Mail had no comment to make on the reports. In May it appointed Canada Post head Moya Greene as its new chief executive to replace Adam Crozier.