Tesco is understood to be considering putting its mobile business up for sale in the coming weeks.
The move to sell Tesco Mobile is part of chief executive Dave Lewis's plans to sell off non-core parts of the supermarket giant's portfolio and could yield hundreds of millions, the Financial Times reported.
In January, Tesco sold Blinkbox to TalkTalk, which could also be among the bidders for the group's mobile business.
As well as operating a mobile network in partnership with O2, which is also seen as a potential acquirer of the business, Tesco Mobile has more than 250 phone shops across the country.
Since taking control of Tesco in September 2014, Lewis has moved to offload assets he believes are dragging on its performance. The supermarket's data business, Dunnhumby, is also on the market and could bring in £2bn (€2.7bn, $3bn).
In April, Tesco posted pre-tax losses of £6.4bn, the worst in the supermarket's 97 years and one of the worst in British corporate history. Tesco declined to comment.