Telefónica could sell up to 20 percent of its stake in its Brazilian unit.

The carrier, which owns a 70 percent stake in its Brazilian subsidiary, is looking to raise funds to underpin its growth ambitions in Europe.

As reported by Spanish publication El Economista, a potential stake sale would still ensure the company retains a 51 percent majority in the unit, which operates as Vivo in the market.

El Economista reports that the telco could carry out a capital increase to avoid selling part of its Vivo shares, in which case the company aims to raise at least €3 billion (R$19.2 bn).

The company has more than 100 million customers in Brazil.

Telefónica is slimming down its operations in Latin America, under an initiative pushed by chairman Marc Murtra.

Since taking over as chairman of the Spanish telco in January, Murtra has signed off a number of sales in Latin America, as the company focuses its attention on its European markets.

The carrier wants to bolster its operations in Spain, the UK, and Germany.

"Our priority will be Europe, Europe, and Europe; we will maintain our leadership position in Brazil as a core market, and we will focus on what we know how to do as an industrial operator," Murtra said in April.

Earlier this year, the carrier sold its Colombian unit for $400 million to Millicom. Just last month, Telefónica also confirmed plans to sell its Ecuadorian unit to Millicom Spain for $380m.

Telefónica sold its Peruvian unit for less than $1m to Integra TecInternational Inc (Integra Tec), taking a huge hit on the $2bn the company spent to acquire the company back in 1994. In April, Spanish publication El Confidencial reported that Telefónica had hired Citi as an adviser to sell its Chilean business unit.

In February, Telefónica struck a deal to sell its Argentinian unit to Telecom Argentina for $1.2bn, while it has also stepped up plans to sell its Mexican unit.