US retail giant Wal-Mart is reported to be considering investing in struggling Japanese retailer Daiei in order to increase its presence in Japan.

Wal-Mart has hired Dresdner Kleinwort Wasserstein and Goldman Sachs Group to advise the retailer on the investment potential of Daiei, Reuters reported, citing a financial source.

Wal-Mart is one of several parties rumoured to be interested in investing in Daiei, which has been struggling to improve performance and cut its large debt.

Wal-Mart already has a presence in Japan, through its 37.8% stake in supermarket chain Seiyu.