Target is only looking to sell the debts it is owed by cardholders. It would still keep control of the credit card operations, which are part of a key marketing strategy for the company.

Earlier this month, Target Chairman Gregg Steinhafel said the company believed the most likely form of such an announcement would be that it had agreed with a buyer on terms of such a sale and on the nature of an ongoing arrangement with the buyer.

In January, Target said it wanted to sell all of its credit card receivables, which totaled $6.7 billion as of October 30, 2010. It sold a 47 percent stake in those loans to JPMorgan Chase & Co in 2008.

Credit card portfolios sold at an average premium of 15 percent in 2010, meaning the full business could fetch up to $7.7 billion, analysts have previously said. Proceeds could be reduced by third-party stakes in the receivables.