The news comes after RBS failed to agree the terms of the sale of Williams & Glyn in H1 due to issues around RBS’ archaic technology system.
The board of Clydesdale Bank confirmed it was engaged in discussions with RBS and had made a preliminary non-binding proposal, but it added the engagement is “on-going and there can be no certainty that a transaction will occur, nor as to the terms on which any transaction might be concluded.”
At the height of the financial crash in 2008, RBS was tasked with the job of separating out Williams & Glyn by the end of 2017 as part of the conditions tied to its £45bn bailout.
The new bank will have 314 branches with about an expected 1.8m customers.
Santander was one of the banks reported to have previously been interested in taking on Williams & Glyn but negotiations halted due to a disagreement on pricing and concerns over Williams & Glyn not having a banking licence at the time.