Groupon is likely to appoint Goldman Sachs and Morgan Stanley to lead an initial public offering this year.
The two investment banks are to be appointed as two lead underwriters for the IPO and could raise up to $1bn (£612bn) for the company, Reuters reported, quoting sources familiar with the matter.
Sources close to Morgan Stanley indicated that they were expecting to receive confirmation of the contract.
Goldman Sachs did not respond to calls.
Groupon has not yet decided how much it would raise from an offering or when to do so, but is reportedly considering the second-half of the year, probably the third quarter.
This could value the deal-of-the-day website at between $15bn (£9.18bn) and $20bn, according to Reuters.
Groupon has said it has been profitable since June 2009 but does not publish its financial reports.
The site, which offers discounted restaurant and retail coupons, turned down a $6bn buyout offer from Google in December 2010.
Groupon was unavailable to comment.