Iconic photography company Eastman Kodak is preparing to file for bankruptcy in the coming weeks if efforts to sell off digital patents fall through, according to the Wall Street Journal.

The WSJ says "people familiar with the matter" have confirmed that the filmmaker is in talks with potential lenders for around $1 billion in financing to keep it afloat.

The 131-year-old company is still making last-ditch efforts to sell around 1,100 patents through a court-supervised bankruptcy auction.

A filing for bankruptcy could occur as soon as this month or early February, the source said.

A US based Kodak spokesman told the ABC that the company does not comment on market rumours or speculation.

Kodak shares plunged 28 per cent on the report.