Ferrovial-owned BAA has agreed to sell Edinburgh airport to Global Infrastructure Partners (GIP), sources said on Monday, adding the Scottish hub to an investment portfolio that includes London's Gatwick and City airports.

An investment fund founded by Credit Suisse and General Electric, GIP beat off a consortium led by JP Morgan.

GIP has been chosen but the price is closer to 750 million pounds ($1.2 billion) than the 850 million pounds that has been reported. An official announcement could come this afternoon, said one source close to the sale process.

Another source also said GIP had won the deal and that the reported price tag of 850 million pounds seemed too high.

Other sources said discussions on price were still under way. BAA declined to comment.

BAA last year chose to sell Edinburgh airport after Britain's Competition Commission ordered it to dispose of one of its Scottish airports.

The regulator also required BAA to sell Gatwick as part of a drive to loosen the firm's grip on the sector.

BAA has also been ordered to sell London Stansted, leaving it with the capital's main Heathrow hub, as well as Southampton in the south of England and Glasgow and Aberdeen airports in Scotland.

($1 = 0.6205 British pounds)

(Reporting by Rhys Jones and Sophie Sassard; Writing by Paul Hoskins; Editing by David Hulmes)