The deal will be announced within the next few weeks, The Sunday Times reported.
Airlines have long-struggled to raise cash against what is one of their most valuable assets. Virgin Atlantic tried three years ago to raise £450 million through a similar arrangement.
The money the airline raises will reportedly be used to invest in new aircraft.
The deal also sheds light on why the airline setup a new entity Virgin Atlantic Airways Ltd earlier this year.
The Sunday Times reported that the company will be in place to take over the Heathrow slots should the main airline stop flying.
The airline told the paper that it did not comment on “market speculation”.
