Russian tycoon Oleg Deripaska is ready to buy out RUSAL's <0486.HK> blocking stake in Norilsk Nickel to resolve a shareholder dispute at the world's largest aluminium producer, a source close to the RUSAL board said on Monday.

No official proposal has been made, but it would be the only right and beautiful way to resolve the problem, the source told Reuters on condition of anonymity.

As a result, RUSAL's debts would fall, the company would be able to pay out dividends to shareholders, raise its share price and concentrate on its aluminium projects.

Earlier, the Vedomosti daily reported that Deripaska was prepared to offer around $9 billion (5.67 billion pounds) for the one-quarter stake in Norilsk, the world's largest miner of nickel and palladium. RUSAL bought the stake in 2008 for an estimated $14 billion.

The source said there had been no mention yet of price in talks between RUSAL's shareholders.

(Reporting by Polina Devitt, Writing by Douglas Busvine)