Abu Dhabi investors have discussed a 10 billion pound ($15.97 billion) investment into Royal Bank of Scotland
The newspaper cited people close to the discussions as saying talks have taken place over the course of the last three years into a potential investment in two of Britain's two big part-nationalized banks, RBS and Lloyds
Reuters reported on Tuesday that the RBS talks are being held at the level of the Abu Dhabi ruling family and it could end up with a stake of more than a third in RBS.
Abu Dhabi investors could invest up to 5 billion pounds in RBS stock - potentially equivalent to a 14 percent equity stake, the FT said.
The remainder would be injected as contingent capital, funds that would be available under pre-negotiated agreement, which could convert from debt to equity on a pre-agreed basis, the FT said.
People familiar with the talks, cited by the FT, said a deal was more likely in 2013.
Neither RBS nor Lloyd's could be reached immediately for comment.
($1 = 0.6263 British pounds)
(Reporting by Stephen Mangan; editing by Carol Bishopric)