The US Treasury Department late on Wednesday reached a deal with insurer AIG to sell off an estimated $6bn in stock in an attempt to gradually sell down the stake it still owns.

The Department already cut its stake to 77 percent when it sold 200 million shares last May. Shares are now being offered at $29 apiece.

Under the agreement, AIG has to pay off over $8.5bn in obligations.

AIG's CEO Robert Benmosche said in a statement: “The people of AIG have achieved another significant milestone in their progress toward the goal that American taxpayers recoup their entire investment in AIG at a profit.”