The firm has been hit by restrictions imposed on its by the US which have affected both its ability to obtain the high-end SoCs and also the Android operating system for its P and Mate devices which compete with the iPhone and other top-end models.
In November last year, Huawei sold its budget line of smartphones, known as Honor, to Shenzhen Zhixin New Information Technology, a new company formed by 30 dealers and agents, for an unspecified sum.
Reuters reported that talks between a consortium led by investment firms which had support from the Shanghai Government and Huawei had been going on for months now.
About US$40 billion worth of Mate and P Series phones shipped between the third quarter of 2019 and the third quarter of 2020, according to the tech research company IDC.
A Huawei Australia spokesman told iTWire: “Huawei has learned there are unsubstantiated rumours circulating regarding the possible sale of our flagship smartphone brands. There is no merit to these rumours whatsoever. Huawei has no such plan.
"We remain fully committed to our smartphone business, and will continue to deliver world-leading products and experiences for consumers around the world."