Chairman and CEO of International Lease Financial Corp., Steven Udvar-Hazy is in talks with insurer American International Group to purchase a portion of the International Lease Financial Corp's aircraft portfolio.

International Lease Financial Corp., the jet leasing company has been up for sale for more than a year.

The Wall Street Journal stated that the talks were in a "preliminary stage" and AIG board will discuss the possible deal in September.

The deal would require government and AIG approval and the proceeds from the deal would go to pay down AIG's debt obligations. AIG needs to reimburse more than $180 billion in US bailout loans.

The leasing company, which owns more than 950 planes, reported a fall of 5 per cent in operating profits to $335 million during the recent quarter.

AIG could not be reached for comment.

In the recent trading, shares in AIG soared to $50.23, gaining $2.39.