The deal is said to be close to being finalised and is likely to give Coles Myer a greater number of outlets for discount fuels sales than arch rival Woolworths, which runs almost 300 'Petrol Plus' retail outlets.

Under the scheme, shoppers who spend certain amounts at stores such as 'Coles' or 'Bi-Lo', would earn a discount docket, which would give them a few cents per litre off the petrol price when presented at a Shell station.

Shell already has links with Coles Myer, being one of the original partners in the FlyBuys program, along with the National Australia Bank.

Shell spokesman Vincent Cosgrove declined to comment specifically on speculation that a deal had been finalised between Coles Myer and Shell. "We're always looking for ways to increase shareholder value," he said. "We're in discussions with a variety of parties."

Shell controls about 27% of the Australia petrol market, behind Caltex/Ampol with 31%, and leads BP with 24% and Mobil with 16%.