The Sunday Times reported the company has hired KPMG consultants to find a buyer for its nuclear division.
The proposed move is believed to be part of Rolls-Royce’s Chief Executive Warren East’s plans to re-focus the company in other areas, including core jet engines, power generation turbines and defence.
The company supplies safety systems to more than 150 nuclear power stations in the world.
A spokesperson from Rolls-Royce said: “Rolls-Royce is conducting a review of options for its international civil nuclear business.”
Earlier this year, it signed a contract to provide back-up power to the Hinkley Point C nuclear power plant in the UK.
It is understood the proposed sale would not include Rolls-Royce’s work on the Hinkley project.