Wachovia, which catapulted to the top of the US banking industry with relentless acquisitions of weaker rivals, was in advanced discussions Sunday night to sell itself to Wells Fargo & Co, according to people familiar with the situation.

Wachovia was also holding talks with Citigroup, but by late evening Wells Fargo appeared to be the preferred bidder. Details of the proposed transaction weren't immediately clear, and the discussions could fall apart at the last moment.