British motor insurer Direct Line has reportedly reached advanced stage of negotiations with many financial services companies to dispose of its operations in Germany and Italy.

Two sources familiar with the development were quoted by Reuters as saying that at least four suitors have submitted non-binding bids for both the units.

One of the sources told the publication that Direct Line’s operations in Germany and Italy, market motor insurance through the Direct Line brand.

The combined value of the businesses amounts to approximately $500m, another source told the news agency.

Direct Line has appointed US investment banking firm Goldman Sachs to offer advice on the proposed sale.

It is believed that the sale will involve another round of binding bids, prior to choosing a final buyer in late September, the sources added.