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This is according to a report in the Sunday Times, which suggests that the bank could seek to raise up to £15 billion through a rights issue.
Chief executive Eric Daniels is said to want to limit the bank's reliance on the initiative, as he believes the £15.6 million charges associated with taking part are too high.
The bank said in a statement that it is currently working with the Treasury to "finalise the detailed terms" of its involvement in the APS.
These will be "in the best interests of our shareholders", it added.
Earlier this week the bank - which partially owned by the taxpayer and acquired rival HBOS earlier this year - reported a first-half loss of £4 billion.
