Clydesdale has made a last minute bid to buy Williams & Glyn from Royal Bank of Scotland, according to the Financial Times.
Clydesdale says it has made a “preliminary non-binding proposal” for Williams & Glyn.
RBS wants to get a sale agreed in principle by the end of 2016. The firm needs to sell the 300-branch business by the end of 2017 under the terms of its bailout.
Last month Santander pulled out of the deal talks after failing to agree on a price.
The Williams & Glyn business is valued at around £1.3bn.
Williams & Glun will have 1.8 million customers, net loans and advances worth £20bn and customers deposits of £24bn.