Xerox has made a cash-and-stock offer for personal computer and printer maker HP, CNBC has confirmed.

As both companies look to cut costs, sources said combining the companies could save more than $2 billion in expenses, CNBC's David Faber reported.

Should the deal come together, the combined company's debt would remain investment grade.

The company's board discussed the possibility on Tuesday and Xerox has an informal funding commitment from a major bank, according to The Wall Street Journal, which first reported the story.

Xerox, which makes printers and copiers, has a market cap of $8.05 billion, less than a third of HP's $27.27 billion market value.

HP on Wednesday confirmed it has held talks with Xerox about a possible deal.

"We have considered, among other things, what would be required to merit a transaction. Most recently, we received a proposal transmitted yesterday," the company said in a statement. "We have a record of taking action if there is a better path forward and will continue to act with deliberation, discipline and an eye towards what is in the best interest of all our shareholders."

Representatives from Xerox did not respond to CNBC's emailed request for comments.