Lenovo is locked in talks with Fujitsu to buy its fading PC business.

Fujitsu confirmed on Thursday morning that it was "exploring a strategic cooperation in the realm of research, development, design, and manufacturing of personal computers for the global market" with Lenovo—the world's biggest PC supplier.

It comes after rumours of discussions between the two vendors first surfaced earlier in October.

Fujitsu cut loose its loss-making PC wing as a separate business in February this year, thereby signalling that the Japanese firm would imminently plant a "for sale" sign outside the property.

The companies added that they were hoping that the government-backed Development Bank of Japan will prop up the proposed buyout deal.

Fujitsu plans to continue to sell and support its own branded PCs, if it does successfully offload the business to its Chinese rival. Talks continue with Lenovo "in pursuit of a mutually beneficial collaboration," Fujitsu said.

Shares in Fujitsu soared nearly eight percent to ¥ 599.3 at close of trading in Japan on Thursday, following confirmation of its merger talks with Lenovo.