Fashion giant Calvin Klein Inc is to sell itself to leading shirt maker Phillips-Van Heusen Corp for about $400 million in cash, the Wall Street Journal reported on Tuesday.

Citing people close to the talks, the paper said the agreement involves roughly $30m in stock and potential royalties worth between $200m and $300m. It added an official announcement could be made as early as today.

Up for grabs is a business that consists mainly of the design studio and a number of licenses for Calvin Klein products, but which has struggled so far to find a strategic investor.

The closest it has come to closing a deal was with Warnaco Group Inc - maker of CK jeans and underwear - which nearly bought Calvin for around $900m before filing for Chapter 11 bankruptcy protection.

Clothing giant VF Corp was also rumoured to be in the running for Calvin Klein but the WSJ said today that after the deal is completed, Phillips-Van Heusen will be renamed Calvin Klein Co.

Calvin Klein and Phillips-Van Heusen have yet to comment on the report.