UK retailer Sainsbury has remained silent on reports it has narrowed down its search for a replacement to chairman Sir Philip Hampton to two candidates.

Sainsbury's is understood to be considering Burberry chairman John Peace and Thomson Reuters deputy chairman Niall FitzGerald for the GBP396,000 (US$651,630) a year role, according to the Daily Mail.

Hampton is stepping down from his role after becoming chairman of the Royal Bank of Scotland.

It is understood the grocer will make its choice at its annual meeting on 15 July.