Stephen Schwarzman’s Blackstone Group is in the running to buy its second major division from GE in roughly two years, The Post has learned.

Blackstone is in the final round of the auction to buy GE Water, the division that filters fracking water and wastewater, for roughly $3 billion, a source close to the situation said.

Private equity firms Bain Capital, and Clayton, Dubilier & Rice, bidding separately, have also been welcomed to the last round, the source said.

GE likely needs to sell the division to gain regulatory approval to complete the $32 billion merger of its oil and gas business with Baker Hughes.

It is likely the only divestiture needed to get the merger through antitrust regulators, sources close to the process said.

Blackstone and Wells Fargo in April 2015 teamed up to buy most of GE Capital Real Estate for about $23 billion.

Also, Blackstone last decade made big profits from a company similar to GE Water. It led an investor group in 2003 that acquired Ondeo Nalco, a water treatment company, for $4.2 billion from Suez and exited in 2007, making a big return.

Meanwhile, investors will be keeping a close eye on GE when it reports earnings Jan. 20.

There is pressure on GE Chairman and Chief Executive Officer Jeffrey Immelt to improve overall profit margins, sources said.

Nelson Peltz’s Trian Capital Management in October 2015 revealed he had invested $2.5 billion in GE. Since then, the shares have risen 25 percent, to $31.46 as of Monday’s close.

GE said on Oct. 31 it was exploring options for selling the Water & Process business.

GE declined further comment, and Blackstone declined comment. Bain and CD&R did not return calls.