HSBC has asked investment bankers at JPMorgan to look for potential buyers for its business.
If the deal materialises, it would be substantial for HSBC financially, the sources told the publication.
HSBC has been operational in Canada since 1981 and it claims to be the seventh largest bank overall in the country.
The sale, which would significantly reduce HSBC’s North American presence, could value the Canadian unit at about £6bn, the publication said, citing an analyst.
The London-headquartered bank has already started the process of reducing its presence in the US.
In 2016, the bank also disposed of its Brazilian business for more than $5bn.
Responding to a query, HSBC said: “HSBC regularly reviews its businesses in all its markets. We are currently reviewing our strategic options with respect to our wholly owned subsidiary in Canada.
“Amongst the options being explored is a potential sale of HSBC Group’s 100% equity stake in HSBC Bank Canada. HSBC Bank Canada is a very strong business and Canada’s leading international bank. The review is at an early stage and no decisions have been made.”