The owner of the Independent and the Independent on Sunday has said it is in exclusive talks to sell the titles to Russian businessman Alexander Lebedev, the owner of the Evening Standard.
Lebedev bought the Evening Standard, which is now given away free, earlier this year. Many newspapers are struggling with falling circulations as readers move increasingly to online content. They have also suffered during the recession from falling advertising revenues.
Independent News and Media has been struggling to repay debts but has now come to an agreement with creditors, allowing the on-off talks to resume, reports suggest. The group reported pre-tax loss of 161m euros (£144m at the time) last year, down from profits of 248m euros in 2007.