The consortium led by USA fund Bain Capital includes Innovation Network Corp of Japan, the Development Bank of Japan and South Korean chipmaker SK Hynix Inc, while Apple Inc, Dell Inc and other US technology companies have also joined the group.
Reuters reported on Wednesday that the decision was made by Toshiba's board and would be announced later in the day. Apple, Dell and other U.S. tech firms have also reportedly joined the consortium.
Toshiba and SK Hynix could not be reached outside business hours. Only last week, Western Digital looked in poll position to tie up a deal, with reports coming out of Japan that the deal was in the final stages.
Some industry sources anticipated that the talks will finally conclude this time. Turning its back on a proposed deal led by Western Digital, Toshiba is set to make around $22 billion from the sale.
Earlier news reports said that the Japanese chip company had been delaying the final decision for sale as part of its efforts to raise the bidding price.
Toshiba shares jumped 2.86 percent to 324 yen, while SK Hynix shares were up 0.63 percent.
Toshiba has been trying to spin off its chip business to help mitigate its hefty debt woes and losses related to its now-bankrupt U.S. Westinghouse nuclear unit.
The Japanese firm's memory unit is the world's second largest NAND flash memory chip producer.