Melbourne-based grocery retailing major Coles Myer is believed to be mulling a move into retail banking services.

Market watchers expect Coles to announce an alliance with Westpac Banking Corp within a matter of weeks.

The move will follow the financial services venture deal between supermarket giant Woolworths and the Commonwealth Bank of Australia, although sources told Dow Jones that the venture will not be of the same size or scale as those at the other grocery giants.

Coles' financial services project is being led by Rob Giles, a former Westpac executive.