LONDON (Reuters) - Prudential <PRU.L>, Britain's largest insurer, is in talks to buy the Asian operations of bailed-out insurance giant AIG <AIG.N> in what would be one of the largest ever overseas deals by a UK firm, Sky News reported.

Sky said Pru Chief Executive Tidjane Thiam was putting a proposal to AIG's board in New York on Saturday.

Sky added financing for the deal, which could be worth about $25 billion, could include a 15 billion pound ($22.8 billion) share issue.

Prudential declined to comment.

(Reporting by Clara Ferreira-Marques)