Intel Corp is preparing to sell its NAND memory chip business to South Korean chipmaker SK Hynix Inc for around $10 billion in an all-cash transaction, a source familiar with the matter said on Monday.

Intel would sell its solid-state drive business in the United States and its factory in Dalian, China, which produces advanced flash memory, referred to as 3D NAND, the source told Reuters. The company would keep XPoint, its advanced memory technology unit.

Both the companies did not immediately respond to Reuters' requests for comment.

The Wall Street Journal reported earlier in the day that the deal could be announced as soon as Monday. Intel's shares were up nearly 3% after the report.