Debt-ridden Australian manufacturer Pacific Dunlop has confirmed it is negotiating a sale of its clothing and footwear division, Pacific Brands.

Two consortia are believed to be in the bidding, however, PacDun refuse to confirm or deny rumours of their identity.

Information about the sale is expected to be forthcoming at the annual general meeting on Friday, said Ian Veal, PacDun's executive general manager of strategic direction.

According to analysts, PacDun, which has crippling debts, needs to raise a minimum of $A700 million from the sale of Pacific Brands..