Goldman Sachs is close to signing a deal to sell its hedge fund administration business to U.S. bank State Street Corp , the Financial Times reported in its Monday edition.

According to the newspaper, sources familiar with the sale said the investment bank is in late-stage discussions with State Street over the deal, which would create the biggest administration services provider to hedge funds worldwide.

The combined business would oversee funds of close to $700 billion, although no formal agreement has been reached, the FT said.

Goldman Sachs and State Street could not be reached for immediate comment.

(Reporting by Alessandra Prentice; Editing by Dale Hudson)