LISBON (Reuters) -U.S. private equity fund Lone Star has decided to sell its 75% stake in Novo Banco to French banking group BPCE in a deal that would value Portugal's fourth-largest lender at around 7 billion euros ($8.14 billion), Portuguese economic news outlet ECO said on Thursday.

ECO said the "decision has been taken" and should be communicated to the market later on Thursday, without citing its sources.

Reuters was not able to independently verify the information. Lone Star and Novo Banco declined to comment and BPCE did not immediately respond to a request for comment.

With this decision, if confirmed, Lone Star is abandoning the option of Novo Banco making an initial public offering that was advocated by Novo Banco management.

($1 = 0.8600 euros)