Embattled supermarket chain Woolworths says it is currently evaluating whether or not to sell its petrol business, worth $1.6 billion, after receiving proposals from a number of parties.

The company is under pressure to preserve capital after its failed home improvement venture Masters saw it post a loss of $3.2 billion in its full year results in August.

"Woolworths remains in discussions with a number of interested parties," the company said in a statement released to the ASX.

"No decision in relation to the future of the business has been made, and Woolworths wishes to advise that current discussions may not result in a transaction."

Slumping petrol sales during the year has been a problem for Woolworths, after an agreement with Caltex ended.

In its full year result, Woolworths said earnings for its food and petrol sales declined 40.8 per cent to $1.76 billion.

Caltex, Australia's only listed fuel refiner, appears interested in Woolworth's $1.6 billion fuel network.

In the chairman's letter to shareholders released to the ASX today, Caltex chairman Greig Gailey spoke of Caltex's future growth, saying investment would continue in the company's supply chain.

"We will also continue to explore low-risk adjacent business opportunities, based around our core capabilities of retailing, supply chain management, infrastructure services and product sourcing," he wrote.