Stuart Rose sees M&S's core values as the key to future profitability

M&S is in the middle of shake-up led by chief executive Stuart Rose, who is thought to regard the internet operation as a non-core activity.

Mr Rose is keen to focus on M&S's core values, namely its High Street stores with particular emphasis on womenswear.

A report in London's Evening Standard names Amazon as the likely partner.

Amazon said it could neither confirm or deny that it was in discussions with M&S, and M&S said it could also neither confirm or deny that Amazon was the most likely suitor.

Major coup

If M&S online is contracted out, the move will be seen as one of Stuart Rose's boldest decisions yet as the website is one of the most popular shopping sites in the UK.

And if Amazon clinches the deal it will be a major coup for its UK arm.

At present, the UK operation only acts as a contractor for Waterstone's online business and it is thought to be eager to follow in the footsteps of its US parent by securing more outsourced contracts.

In the US, Amazon has partnership deals with the Target chain store and Borders.