Vodafone is to retain its stake in Verizon Wireless after opting not to exercise an entitlement to sell its $54 billion (£26 billion) stake in the American joint venture.

The British mobile group has until Thursday to exercise a “put” option entitling it to sell up to $10 billion of shares in the venture to Verizon Communications, its American partner, but it is understood that, after a review, it has opted to keep its 45 per cent stake.

An announcement from Vodafone on its decision is expected this week.

Last night the group insisted that no formal decision had been made.

Controversy over Vodafone’s policy in the United States has long dogged Arun Sarin, its chief executive.

Last summer disgruntled investors, led by Standard Life, called for the group to sell the stake and return money to investors. The issue was put back on the agenda at this summer’s annual meeting, when Efficient Capital Structures, a small activist shareholder, forced the group to put to the vote a resolution that the holding should be spun off. However, investors holding only 7 per cent of the votes voted for the proposal or abstained on it.

Institutional shareholders in Vodafone said yesterday that they would back it maintaining its Verizon stake. It is understood that their support has been won in part through meetings with Sir John Bond, Vodafone’s chairman. He is said to have hinted that a sale would come at the right time.

Verizon Communications has made no secret of its wish to buy Vodafone’s Verizon Wireless stake, but the two have been unable to agree a price.

One leading investor in Vodafone said: “It is better to sit tight and wait.”

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