QIA, which already owns an eight-percent stake, will take up high yielding securities that will pay a relatively high rate of interest, The Observer weekly newspaper said.

'A deal that could be announced in days will see the Qataris subscribe to one billion pounds worth of new loan stock with another one billion pounds being taken up by Barclays' existing institutional investors,' it said.

A Barclays spokeswoman declined to comment on the report.

One of Britain's leading banks, Barclays did not join its competitors this month in taking up government help to battle the financial crisis, saying it would go it alone and raise more than 6.5 billion pounds from investors.

Barclays is also expected to try to raise another three billion pounds through a rights issue which will be announced after it has published its full year results in February.

It is thought to be hoping that its annual figures will be strong enough to win the backing of investors. -- AFP