Talks are at an advanced stage between Landsbanki and the Qatari royal family over the sale of the collapsed Iceland bank’s majority stake in toy store Hamleys according to reports.

Landsbanki is looking to offload its 65% stake in the famous toy store as it sells off assets as part of its winding up process.

The Qatari royal family’s investment arm Qatar Holdings has emerged as one of the frontrunners for the Hamleys stake, which it values at around £70m according to The Mail on Sunday.

Qatar Holdings bought luxury department store Harrods for £1.5bn last year.