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Sir Richard Branson's Virgin Group is reportedly the latest suitor to consider courting Northern Rock.

Virgin representatives have already met with the bank's management and could make a statement about their intentions as early as today, a report in the Times newspaper claims.

An unidentified source, said to be close to the talks, told the paper: "Virgin is looking at Northern Rock and considering its next move."

Northern Rock shares lifted in early trading on news of the report, which claimed that Virgin was negotiating with Middle East and US investors with a view to establishing a consortium to buy a controlling stake in Northern Rock.

Virgin would assume control of the day-to-day management of the troubled lender if its reported plans are successful, according to the Times. The paper claims that under such a deal Northern Rock would be brought under the Virgin Money brand, which already provides mortgages, credit cards and insurance products.

By 08:03 Northern Rock shares had lifted by 4.7 per cent, to 270p, on the back of the rumour.

Virgin could not be reached for comment on the report.

The company is the latest to be linked to a potential takeover of Northern Rock, with two US investment groups - JC Flowers and Cerberus – also reported to be eyeing up the Newcastle-based lender.

Other potential suitors are thought to include the US private equity group Blackstone, although no formal offer has yet been for Northern Rock.

The lender recently announced that it was in "preliminary discussions with selected parties" over its future, with the company's brand name having been significantly damaged by last month's high-profile run on the bank.

Worried savers withdrew more than £2 billion from Northern Rock after it emerged that the company had asked the Bank of England for an emergency loan in the wake of an ongoing global credit crunch.

Chancellor Alistair Darling yesterday outlined measures to prevent another Northern Rock-style crisis from occurring in the UK again.