AIG board approves $35.5 billion unit sale to Prudential

American International Group Inc's board approved a $35.5 billion sale of its Asian life insurance business to Britain's Prudential plc

, a source familiar with the matter said on Sunday.

Prudential, Britain's largest insurer, will pay AIG about $25 billion in cash and the rest in equity, which could include preferred stock, the source said, declining to be identified because the deal is not public yet.

A deal could be announced as soon as Monday, the source said.

(Reporting by Paritosh Bansal)