Citing people close to the situation, Financial Times reported that after months of restructuring, Citi had begun contacting potential buyers for CitiFinancial.
Likely bidders could include private equity groups and other finance companies.
According to the paper, talks are at an early stage and no deal is imminent.
According to Financial Times report, CitiFinancial could fetch up to $1bn, but warned that the final price would depend on the financing package Citi offers to potential buyers to help fund the business.
CitiFinancial, which was badly hit during the crisis, has 1,500-plus branches and some two million customers.
