The audit committee of the company today approved entering into an exclusive arrangement with an affiliate of Singapore's GIC for the deal.
Global investors Blackstone and GIC were in the race to acquire the 40 per cent stake of DLF promoters in DCCDL.
"Based on the presentations made by bankers and legal advisors, the audit committee decided that we should go ahead and enter into an exclusivity arrangement with an affiliate with GIC," DLF group Chief Financial Officer (CFO) Ashok Tyagi told PTI.
The agreement paves way for entering into the next phase of the process to negotiate definitive transaction documents, the company said in a regulatory filing.
Tyagi said a definitive agreement is expected to be signed within the next two to three months and the deal may be completed by the second quarter of next fiscal along regulatory approvals.
Asked about valuation, he said only the broad principle has been finalised but not the amount.
"We will negotiate and try to close the definitive agreement," Tyagi added.
Sources, however, said the deal is likely to be valued around Rs 12,000-13,000 crore.
DLF holds the remaining 60 per cent in DCCDL. The promoters will infuse a significant amount in DLF to cut net debt of over Rs 24,000 crore.
The country's largest real estate developer, DLF, had announced in October 2015 that its promoters would sell their entire stake in DLF Cyber City Developers Ltd (DCCDL), which holds the bulk of the commercial assets of the group.
Last month, DLF had announced that the conversion period for CCPS (compulsorily convertible preference shares ) issued to the promoters in DCCDL has been extended by one year at their request to facilitate the proposed stake sale.
In a bid to allay market concerns over delay in the proposed deal, DLF's Senior Executive Director (Finance) Saurabh Chawla had told analysts that a one-year extension of deadline for conversion of compulsorily convertible preference shares (CCPS) held by promoters in DCCDL did not mean that "the transaction has been delayed by one year".
In late 2009, DLF had announced the merger of its subsidiary DCCDL with promoter firm Caraf Builders & Constructions. DCCDL had then issued CCPS worth Rs 1,597 crore to promoters.
Post-conversion of CCPS into ordinary shares, promoters will have a 40 per cent stake in DCCDL.
DLF has about 30 million sq ft of commercial area with an annual rent of about Rs 2,700 crore, and of that DCCDL holds about 22 million sq ft of commercial space.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)