Japan's Sharp Corporation said on Monday it was considering selling its US-based solar energy development unit Recurrent Energy to Canadian Solar but had yet to make a final decision on any deal.

On Sunday, the Nikkei business daily reported Sharp had agreed to sell Recurrent to the Canadian firm for about 30 billion yen ($247 million), and that the deal could be completed early next year.

In a statement concerning Recurrent, Sharp said it was "considering various possibilities including the sale of the company but there are no final decisions at this point."

Sharp paid $305 million in cash in 2010 to acquire Recurrent Energy. Selling the company now would help Sharp to raise capital as it struggles to raise its equity ratio to a healthy level.

This year, Sharp shut down its British solar plant and also pulled out of a venture with Italian energy firm Enel SpA to make solar panels and generate solar power.-Reuters