American International Group Inc was closing in on a deal on Sunday to sell its foreign life insurance unit to MetLife Inc for about $15 billion, in a transaction that would ultimately leave AIG with more than 20 percent of MetLife, sources familiar with the situation said.

A deal for the unit, American Life Insurance Co (Alico), could be announced as soon as Monday, the sources said, declining to be named because it is not yet final.

MetLife's board was expected to meet later on Sunday to weigh the transaction, according to the sources.

MetLife is expected to pay AIG about $7 billion in cash and the rest in equity, these sources said.

The equity component of the purchase price includes about $3 billion in convertible preferred, and the rest in common stock and temporary securities similar to common shares, the sources said.

AIG will hold below 20 percent of MetLife as a result at closing, a stake that is expected to increase to above 20 percent -- but below 25 percent -- later, after MetLife's shareholders approve the conversion of the temporary securities to common stock, these sources said.

AIG declined to comment. MetLife was not immediately available for comment.

(Reporting by Paritosh Bansal; Editing by Diane Craft)