is set to buy Med Hotels from lastminute.com for an undisclosed sum this week in a deal that is likely to allow the online travel retailer to sell Thomas Cook holidays online for the first time.
Lastminute bought Med Hotels in a cash and shares deal worth £16.1m in 2003.
Med Hotels now has more than 2,000 hotels, villas and apartments on its books in resorts throughout the Mediterranean, the Caribbean and in Dubai.
Lastminute was itself acquired in 2005 by US travel giant Sabre Holdings, owner of online rival Travelocity, in a £577m takeover.
Both Thomas Cook and Lastminute declined to comment on the deal to The Daily Mail.