Morrisons is set to launch an aggressive price war this week as it fights back against discounters Aldi and Lidl.

The grocer, which emerged as one of the big retail losers over Christmas, is expected to reveal it will invest hundreds of millions into cutting prices when it unveils its full year results this Thursday, The Mail on Sunday reported.

Morrisons will be the latest big grocer to launch price cuts in the face of intensifying competition from the discounters that have been stealing market share from the big four. Tesco and Asda have already vowed to cut prices to woo cost-conscious shoppers.

Morrisons is also set to unveil the findings of its property review which is expected to lead to it offloading £500m of assets including distribution centres and small shopping centres.

Analysts at Deutsche Bank believe Morrisons will post a 13% fall in profits to £787m on Thursday.