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Talks between the Treasury and the European Commission (EC) are currently taking place regarding the matter and the bank said it will issue an update later in the week.
The move would see RBS purchasing an insurance policy from the government, which would protect it should it make any future losses on its more toxic investments.
However, it may have to sell off more of its assets than it had previously anticipated, meaning a larger number of employees may soon be searching for ways to earn extra money.
According to reports, its Churchill and Direct Line insurance firms are two aspects of the business it could have to relinquish control of, as the EC will not offer its approval of state funding until it disposes of more of its assets.
The announcement prompted RBS shares to decline on the FTSE 100 stock market in London, dropping 3.92p to 38.01p at 14:46 GMT.
Posted by Greg Secker
