A sale of the bank was previously on the cards back in 2020 but talks broke down. Sources said the company was also considering options including mergers, acquisitions and an initial public offering.

The Co-operative Bank is considering putting itself up for sale, sources say.

The proposal is one of a number of options under review for the firm’s future after it called in advisers at PJT Partners and Fenchurch Advisory.

The high street bank is also exploring mergers, acquisitions, and an initial public offering (IPO), people familiar with the matter told news agency Reuters.

But it is not yet actively soliciting offers while it waits for market conditions to improve. It comes following recent jitters sparked by the Silicon Valley Bank turmoil last month, the sources said.

A sale could come as soon as this year but deliberations are still said to be in an early stage.

Potential suitors include OneSavings Bank, FirstRand’s Aldermore, Paragon and private-equity-backed Shawbrook.

Sky News reported last year how the bank had appointed PJT Partners to help scrutinise potential takeover targets.

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In March the Co-op Bank and Sainsbury’s Bank called off talks about a £650m mortgage deal after failing to agree on a price.

It came as Co-op Bank CEO Nick Slape said he was not aware of any takeover interest but suggested the situation could change.

He told the Mail on Sunday last month: “It goes with progress. If the bank is progressing and performance is better, somebody might want to look at us.”

Co-op Bank had an equity value of close to £1.3bn at the end of December, according to its latest annual accounts.

It had more than £28bn of assets on its balance sheet and reported a pre-tax profit of £132.6m for 2022.

A sale of the bank to Cerberus Capital Management was on the cards in 2020 but talks ultimately broke down.

In 2021 the Co-op then made an audacious offer to rival TSB which was rejected by its Spanish parent company Banco Sabadell.

The Co-op Bank, and the groups named as potential suitors, all declined to comment.