Fairfax Media understands Unique Websites, which currently licenses the Trading Post brand from Telstra, is negotiating its outright purchase and that a deal could be signed within the next six months.

But the deal is expected to reap Telstra a far smaller amount than the $636 million it paid Dutch company Trader Classified Media NV during a hotly-contested sale in 2004 where it beat other contenders. Sources said the final price could be less than $10 million but added negotiations were ongoing.

The sale would be a final nail in the coffin for Telstra's local classifieds and directories businesses, which were once collectively valued at almost $16 billion.

When asked about the sale of Trading Post, a Telstra spokesman declined to comment but said Unique Websites had been given full responsibility for operating the business in June 2013 and that the telco remained committed to growth areas of its media unit.

"We are pleased that they are repositioning this brand, which resonates with many Australians," he said. "In relation to our media business, we remain committed to building and investing in new growth areas.

"[Telstra] is Australia's largest IPTV service provider, delivering premium movies, music, live sport and entertainment."

Sensis, which publishes the Yellow Pages directory, was valued at $15 billion in 2005 but a 70 per cent stake was sold by Telstra in 2014 for just $454 million to US Private Equity firm, Platinum Equity, in a deal that did not include The Trading Post.

Started in 1966 as the Melbourne Trading Post, the publication became the bible of buying and selling goods for all Australians in the pre-internet era. Everything from cars and boats to household sundries were spruiked by the paper, which was immortalised in the film The Castle with the classic line, "Tell 'im he's dreamin".

But the rise of global internet services that slash advertising prices such as Google and eBay has meant the demise of classifieds and directories businesses once seen as dominant forces in the Australian media world.

The Trading Post Group made $148 million in revenue during 2004 and was expected to boost savings and produce more cash after merging with Telstra.

But by June 2007 its carrying value had already been written down to $337 million and in financial year 2010 it was making just $38 million in revenue.

The print version of The Trading Post ended in October 2009 and it went digital-only. Its online site continues to sell a wide variety of products from cars to horses and pot plants.

However, Telstra will not need to report a major write-down – an official loss – after the sale. This is because the company began winding down the operation from 2009.

"From 1 July 2009, the Trading Post mastheads have been assigned a finite life and are being amortised over a period of 5 years," Telstra said in its financial year 2010 annual report to shareholders.

And when it comes to the classifieds business the telco giant can boast that it is big in China. Its Chinese car sale website Autohome is listed on the New York Stock Exchange with a market capitalisation of around $US4 billion.