Nissan Motor CEO Ivan Espinosa said the company plans to reduce Renault's stake in Nissan.
Nissan and Renault announced in March that they had agreed to reduce the minimum stake from 15% to 10%.
Under the agreement, any share sale must be mutually agreed upon and is subject to pre-emptive rights of purchase by the partners.
According to Nikkei, the sale of the 5% stake in Renault is expected to raise around $640 million at current prices, and the proceeds will be used by Nissan to develop new vehicles in the face of a challenging business environment.
The news comes after Renault announced on Sunday that CEO Luca de Meo would leave the company to take on a new role outside the automotive sector.
Renault is now selling Nissan shares in stages from 2023 to support a more balanced alliance between the two organizations.
