A Japanese Government-backed fund is considering investing in Sharp to take the initiative in reorganizing the electronics maker's operations, Nikkei business daily reported. The Innovation Network Corporation of Japan (INCJ) and Sharp had hired financial advisors to gauge Sharp's asset value and would hold direct talks on the size of any investment, the report added.

INCJ is also the top shareholder of Sharp rival Japan Display (JDI), the world's largest maker of liquid crystal displays for smartphones and tablets.

Sharp had considered spinning off its LCD panel business, a source told Reuters in April.

Sharp declined to comment on the report.

Sharp has been a display supplier of Apple but LG Display and Japan Display have managed to receive the majority of orders by Apple in the last couple of years.