The U.S. Treasury Department is planning to give private capital groups more details on Sunday about incentives the government will provide to ensure their participation in a plan to buy up banks' troubled assets, a source familiar with the matter said.

Such public-private partnerships are part of a three-pronged approach the U.S. government is taking to cleanse banks' balance sheets of toxic assets, many of which are tied to mortgages.

The U.S. government is planning to provide private capital groups with low-cost loans and other incentives to ensure their participation in the rescue effort, the source said.

(Reporting by Karey Wutkowski)