Kuwait Finance House will decide the fate of its Malaysian business by the end of this month, a spokesman said on Tuesday, after a source familiar with the matter told Reuters that Qatar National Bank had bid to buy the unit.

KFH, the largest Islamic bank in Kuwait, said in May that it was contemplating the sale of its business in the southeast Asian nation and a number of other investments as part of a broader restructuring of its operations.

A spokesman for KFH said it was "looking at several options whether to restructure, sell or merge" its Malaysian business and that "the decision will be concluded by the end of this month".

A source familiar with the matter told Reuters that QNB, the Gulf's largest lender, had submitted a bid to purchase the Malaysian unit.

The source declined to provide further details, and whether there were other bidders involved.

A spokesman for QNB said the bank had no immediate comment.  - Reuters