Spain's Banco de Sabadell SA is negotiating deals to sell two portfolios of toxic real estate properties worth roughly €3.3 billion, Reuters reported, citing a "source with knowledge of the deal."

The bank is in initial discussions for €2.4 billion of foreclosed properties and other assets, and close to sealing a separate deal for €900 million worth of nonperforming real estate loans, the publication noted, citing the source.

Banco de Sabadell is looking to sell soured real estate assets worth more than €6 billion by 2020, according to the report, which noted that lenders in Spain often sell bad assets at a roughly 60% discount from face value, despite the recent recovery of the country's property market.

Banco de Sabadell and KPMG, the bank's adviser on the deals, declined to comment, Reuters said.