Beleaguered Italian dairy company Parmalat is reported to have sold its operations in Argentina.

A public announcement regarding the sale is expected within the next four weeks after approval by Italian regulators, Dow Jones International News reported, citing a source close to the deal.

The buyer is believed to be either local businessman Sergio Taselli, whose holdings include train operator Metropolitano and an agricultural company, or another local businessman, Jorge Cinque.

Parmalat has three production plants in Argentina, which it hopes to divest as part of its efforts to cut debt following a massive financial scandal.