The UK government is seeking an adviser to lead the next stage of its effort to sell stakes in Royal Bank of Scotland Group and Lloyds Banking Group, people familiar with the matter said on Wednesday.

The government still owns an 80% stake in RBS and a 20% stake in Lloyds following bailouts by taxpayers in 2008. UK Financial Investment, which manages the government's bank stakes, appointed JP Morgan as privatisation strategy adviser in July 2013 but is now retendering for the role.