Qatar-backed investment fund Delta Two, which upped its stake in Sainsbury's to 25% last week, is reportedly planning to make a full bid for the supermarket chain.

Delta Two has been sounding out other investment banks on their willingness to co-finance a full takeover for the past four weeks, according to reports in the Daily Telegraph.

Sainsbury's fought off a £10.1bn bid approach from a private equity firm led by CVC Partners in April this year.

Meanwhile, the retailer is expected to report its 10th consecutive quarter of like-for-like sales growth in a trading update on Wednesday.