Lloyds TSB is reportedly talking to IBM and one other firm about a mega £1 billion IT outsourcing contract covering computer systems and retail banking networks.
The reports, first detailed in the Mail on Sunday and since picked up by other press, suggest that thousands of IT staff will be shifted to IBM as the bank looks to cut back on technology costs.
Big Blue is said to be favourite to win any contract following past successes at Lloyds TSB.
Lloyds TSB is refusing to comment on the speculation.