BAE Systems will give the go ahead on Wednesday to the sale of its 20 percent stake in planemaker Airbus, the Independent reported without citing sources.

It said a meeting of the BAE board was expected to approve the sale of the stake to the majority shareholder, Franco-German aerospace giant EADS.

Investment bank Rothschilds had put a valuation of 1.9 million pounds on the stake, the Independent said, adding that this was half the amount BAE had initially hoped it would receive.

BAE Systems could not be immediately reached for comment.