Royal Bank of Scotland is reportedly mulling over selling shares worth as much as 4 billion pounds, a move that will reduce government's involvement in its finances.

Unidentified sources informed that RBS wants to prevent the government from increasing its stake in the lender to about 85 per cent by limiting its participation in the Government Asset Protection Scheme.

As per reports, Stephen Hester, Bank's Chief Executive, is pursuing discussions with investors to know how much they are interested in the plan.

The plan will help the lender in reducing its reliance on the government's asset protection scheme, under which it ensured 325 billion pounds of 'bad' assets.

Lloyds Banking Group, the other UK bank that had consented to join the asset protection scheme, is also finding options to avoid government's asset protection scheme.

Shares in RBS dropped 2.1 per cent to 55.1 pence in the recent trading session.