Energy giant E.On has received an €800m (£642m) bid for its energy from waste unit, according to Reuters.
Fellow German utility firm, MVV has tabled a bid for its entire EfW devision which includes 18 incinerators, the news agency said.
Reuters said the deal was part of E.On’s €15bn disposal programme to streamline the business in the wake of Germany’s sudden shift from nuclear power.
The news follows reports that Morgan Stanley Infrastructure and a Swedish private equity group were preparing bids for the EfW unit.
In May, the company was named as one of two bidders shortlisted for the huge West London Waste Authority residual waste contract.