POSCO is set to sell a stake of at least 30 percent in unlisted POSCO Engineering & Construction Co Ltd for around 1 trillion won ($920 million) to Saudi Arabia's Public Investment Fund, a South Korean newspaper reported.

A deal is expected to be signed by end of May or sometime in June, the Chosun Ilbo reported, citing unidentified industry sources.

A spokesman for POSCO Group said a stake sale was being considered but nothing has been decided.