One of the world's largest investment groups is in talks to help finance a £550m takeover of The Daily Telegraph by the owner of The New York Sun.

Sky News has learnt that Apollo Global Management, which oversees assets worth $733bn, has been holding initial talks with Dovid Efune and his advisers in recent days about lending part of the money required for the deal.

Banking sources said on Tuesday that the discussions were preliminary in nature and might not lead to an agreement.

Other debt providers are also in talks with Mr Efune, the sources added.

The development has emerged just three days before an exclusivity period for the US-based businessman expires, although insiders say it is almost certain to be extended.

Apollo ranks among the world's biggest financial institutions and is a major player in both private equity and private credit around the globe.

In the last fortnight, a string of media reports have cast doubt on Mr Efune's ability to complete the deal, with potential lenders including Oaktree Capital Management and Hudson Bay Capital said to have withdrawn from the process.