SoftBank is in talks to sell the Paris-based robotics business behind its Pepper android to Germany's United Robotics Group.
That's according to sources.
The sale would be a scaling back of the business it once touted as a major growth driver.
Two anonymous sources said the talks are ongoing and plans could change.
It is not clear whether SoftBank will retain a stake in the business, nor how much the deal would be worth.
United Robotics Group, which is backed by German industrial robot maker Hahn, became the European master distributor for SoftBank's struggling Pepper and Nao robots in October.
United Robotics declined to comment.
SoftBank has said it remains committed to the Pepper business.
But Reuters reported in June that it had stopped production and cut staff in France.
Sources say the unit has been plagued by tensions between European staff and Japanese managers.
SoftBank is now focusing on selling hardware produced by other firms.