The Washington Post has been told by sources that the Obama administration is poised to sell its stake in Citigroup, netting about $8 billion in profit.

The Post further reported that Citigroup's bailout was the biggest on Wall Street.

According to the report, the government's 27 percent stake in the bank has grown in value to $33 billion.

The Post also said that leading financial firms such as J. P. Morgan Chase, Morgan Stanley and Goldman Sachs are competing to be chosen as the deal's underwriters.

Industry officials familiar with the matter told the newspaper that to improve their chances, some banks, such as Goldman Sachs are offering their services to the Treasury Department at almost no cost.

The Post further reported that the windfall from the sale would be a validation of the rescue plan adopted by government officials during the height of the financial crisis, when the banking system neared the brink of collapse.

A year ago, Citigroup's stock was around a dollar a share, and the bank's future seemed shaky -- on Friday, the stock closed at $4.31.

The Post also informed that if the sale goes ahead, Citigroup would be able to cut nearly all of its links to the $700 billion Troubled Assets Relief Program and the administration could highlight the profit. (With Inputs from Agencies)