Banks will meet in New York City on Thursday to pitch for the mandate to sell the U.S. Treasury's stake in bailed-out insurer American International Group, a person familiar with the matter said on Wednesday.

The Treasury will own 92.1 percent of AIG after a recapitalization deal closes, which is expected this week. Sources have said a large secondary offering - $10 billion or more - is expected sometime in the second half of May.

(Reporting by Clare Baldwin, writing by Ben Berkowitz; editing by Carol Bishopric)