Filtronic seems about to agree the sale of its gallium arsenide (GaAs) semiconductor manufacturing business.
It has been known for some months that Filtronic looking to sell the Newton Aycliffe-based GaAs wafer fab, which had become a commercial drain on the company.
The deal with an un-named buyer is more like a transfer of ownership because initially no money will change hands.
According to Filtronic, there is "no initial consideration" but the "potential for deferred consideration dependent on the achievement of certain targets".
The company's pension liabilities remain with Filtronic.
It was the loss of a key customer earlier this year which prompted Filtronic into the sale plan.
Due diligence must now be completed by the purchaser prior to the execution of a definitive legal agreement.
A year ago Filtronic part of its Wireless Infrastructure division to US firm Powerwave Technologies.