Morrison, the UK's fourth-biggest supermarket chain, is in talks over a partnership with online grocer Ocado, which would involve using the online retailer's warehouse capacity and technological expertise as it plays catch-up with its larger rivals, reported Sky News.

The retailer will announce its intention to set up an online grocery business Thursday, and is allegedly in detailed talks with Ocado's management team about the joint venture.

The details have not yet been finalized, but one person close to the talks said they had been taking place for some time.

They