Retailer Tesco is on the verge of selling more than 10 of its largest stores in the UK as it looks to raise up to £500m (€635m), the Sunday Telegraph has reported.

According to the newspaper, the group is in talks with a major British pension fund, which according to property advisors could be the Universities Superannuation Scheme.

Money raised from the potential sale and leaseback deal is expected to be used to reduce Tesco's debt.

The group has recently announced that it will enter the Indian market next year by launching a cash and carry wholesale business.