THE hunt for a buyer to rescue stricken bank Northern Rock could see cash-rich Middle Eastern governments approached as the bid deadline looms.

The government is understood to have given Goldman Sachs, the investment bank charged with finding financing for a takeover, the all-clear to widen the search to include so-called sovereign wealth funds.

These state-owned investors have built up sizeable cash funds as the price of oil has rocketed in recent years and could provide the financing needed to take Northern Rock private.

European Union rules on state aid require the Bank of England's £25 billion loan to Northern Rock to be repaid next month. Chancellor Alistair Darling should make a decision on the bank's future by mid-February.