AIG announced it was putting Alico up for sale last October in a bid to raise cash to repay the £50bn it borrowed from the US government. Initial discussions with Metlife fell through earlier this year. According to reports, Metlife tabled an offer of around £6.9bn but AIG is understood to have wanted a figure closer to £12.5bn.
AIG halted talks with potential bidders, including Prudential and Axa, after it received its fourth bailout from the US government in March. It is believed to have rekindled discussions with Metlife in July and a revised offer could be tabled within the next month.
Alico has since been spun off into a separate entity, partly owned by the Federal Reserve. AIG is believed to be preparing to list Alico on the New York Stock Exchange.
Metlife declined to comment.