The Independent on Sunday said the bank was looking at the possibility of buying a bank in the north east of the country.

The group is thought to have held talks with Sovereign Financial, North Fork and GreenPoint Financial.

A Barclays spokesman said the bank did not comment on market speculation.

Reports last week named Pennsylvania-based Sovereign Financial as a possible bid target for Royal Bank of Scotland, and the rumours led to a sharp jump in the US bank's shares.

The Independent on Sunday said the Barclays team looking at the US banks was headed by John Varley, the company's finance director and chief executive-elect.

Talks are reportedly at an early stage, and appear likely to focus on North Fork and GreenPoint, who are both based in New York.

The paper said Barclays was being advised by investment bank Credit Suisse First Boston.