Toshiba Corp is nearing a deal to sell its image sensor business to Sony Corp as part of a restructuring plan laid out by chief executive Masashi Muromachi earlier this year, the Nikkei reported on Friday.

The Japanese conglomerate, whose businesses range from laptops to nuclear power, is undergoing a reform after revelations this year that it overstated earnings by $1.3 billion going back to fiscal 2008/09.

Muromachi, who became CEO following the scandal, promised to restructure lower-margin businesses. The deal for the image sensor business would be the beginning of the restructure, Nikkei said.

Sony is already a dominant player in the image sensor market with its products used in phones made by China's Xiaomi Inc and India's Micromax Informatix Ltd.

Toshiba and Sony officials were not immediately available for comment. – Reuters