Woolworths is expected to pull the plug on its $2.2 billion foray into the home-improvement market if joint venture partner Lowe's decides to exercise an option to sell its $1.1 billion stake.

Analysts believe Woolworths is unlikely to continue to run the loss-making Masters chain single-handedly if Lowe's exercises its put option and forces Woolworths to buy its 33 per cent stake for more than $800 million.

"If Lowe's wants out Woolies will want out as well," one analyst said.

The clock is ticking on the six-year-old joint venture, which has racked up losses of more than $600 million and is not expected to break even for another four years.