Sky News reports that the AA's board is set to recommend a takeover which values shares in the debt-laden roadside recovery company at a fraction of their price when it floated on the stock market six years ago.
Under the deal, Towerbrook Capital and Warburg Pincus will pay 35p a share for the business, which dates back to 1905.
That is 86% less than their 250p price when the AA was floated in 2014.
At that time, the company's total share value stood at about £1.4bn.
They now look set to be swallowed up for just £218m, though the new owners are also taking on a debt pile of £2.65bn and will invest £380m to refinance a tranche of that debt.
The AA, which has more than three million members and once styled itself as "Britain's fourth emergency service", is engaged in "advanced discussions" with the consortium ahead of a Tuesday deadline to agree a deal.
Monday's announcement was a disappointment for some investors after reports that the takeover price could be higher, sending shares down nearly 2%.