TALKS between a Victorian power station and its tsunami-stricken major shareholder in Japan have raised the local company's hopes that it will not become a casualty of the post-Fukushima selloff.

Loy Yang Power boss Ian Nethercote says his recent discussions with the Tokyo Electric Power Company (Tepco) have led him to believe the Japanese company will retain its 32.5 per cent stake, despite plans to offload many of its foreign assets.

Indications at this stage are that the Tokyo Electric Power Company will hold on to its Latrobe Valley investment.

Tepco is facing catastrophic financial losses and compensation claims after its Fukushima nuclear plant suffered a meltdown in the wake of this year's tsunami disaster.

In a fight for its survival, Tepco announced on May 20 it would sell non-Japanese and non-core assets to help cover costs that are expected to climb beyond $US130 billion ($A124 billion).