Diageo is in final stages of talks to sell its fast-food chain Burger King for about $2.25 billion to a private equity consortium led by Texas Pacific Group, sources familiar with the situation have said.
But the sources also warned that the deal could fall through at the last minute.
Texas Pacific and its partners will retain Burger King chairman Mr John Dasburg as head of the management team at the food chain.
Support for Mr Dasburg and his team has been crucial for Diageo as the drinks group has wanted to do a smooth sale without ruffling feathers within Burger King's management and franchise owners, the sources said.
Since joining Burger King just last year, the former chief executive of Northwest Airlines has engineered a turnaround of the once floundering franchise.
The deal, if completed, would mark a victory for Texas Pacific which approached Diageo a year ago, at a time when the drinks group was working on a possible float of Burger King on the stock exchange.
Burger King's 11,500-strong chain worldwide, reported sales of little over $1 billion, in 2001 and most analysts expect it grow by up to 0.5 per cent this year despite a sluggish economy.