According to a Daily Mail report, the partner is likely to be among a group that includes Indian conglomerate Mahindra and Mahindra, Bombay Dyeing and National Dairy Development Board.

"Tesco is close to launching an assault on the Indian shopping market through the back door. It has identified a preferred partner to help it break into India, following its failure to seal a deal with industrial group Bharti Enterprises two years ago," the report said. Billionaire Sunil Mittal-led Bharti group has already partnered with US retail giant Wal-Mart for its cash-and-carry business.

Indian regulations allow multi-brand foreign retailers only in the cash-and-carry or wholesale business, allowing them to act as suppliers to the front-end retailers.

The report added that Tesco is in exclusive talks with a "secret party after working its way through a shortlist of 30 potential partners" and an agreement is expected soon for the joint venture.

The deal would not allow Tesco to have its name for the retail stores, as per the current regulations, but would allow it "to build food depots and establish a truck and transport network in preparation for the expected relaxation of regulations."

The report quoted Tesco's Strategy and Finance Director Andrew Higginson as saying: "We would never comment on specifics but are pleased with the way discussions are going."