E-commerce giant Amazon.com Inc. is looking to acquire around 8-10 percent stake in Indian retail chain Future Retail, according to various media reports. The two companies are at an advanced stage of discussions and the deal is expected to be announced in next few weeks, reported PTI, citing sources close to the development.

Amazon's deal with Kishor Biyani-led company will expand the US e-commerce major's brick-and-mortar presence in the Indian market, where it is already a leading player in the online marketplace.

The Future group company is seeking a valuation of about Rs 2,000 crore from Amazon for the stake, reported Bloomberg, citing anonymous sources.

The two retailers have been in talks for a few months, but the new e-commerce policy introduced by the government halted the discussions, noted the PTI report. The new regulations bar online marketplaces with foreign investments from selling products of the companies in which they hold stakes, and ban exclusive marketing arrangements.

A stake purchase in Future Retail, which operates 'Big Bazaar' grocery chain, will mark the third investment in the Indian brick-and-mortar retail by Amazon, which already owns stakes in More and Shoppers Stop.

Future Group and Amazon said they don’t comment on market speculation.

The speculated deal, if it goes through, will hit up the competition in the Indian retail market as Reliance Retail, India’s largest retailer by revenue and network, is also aiming to boost presence in the market.

In its 42nd annual general meeting, chairman Mukesh Ambani said Reliance Industries' consumer businesses—Reliance Jio and Reliance Retail—are expected to generate more revenue in coming years. Ambani said Reliance Retail has crossed Rs 130,000 crore turnover. RIL's consumer business now collectively contributes 32 percent to consolidated EBIDTA.