The outsourcing deal is centred around the DWS fund management division and forms part of wider efforts to cut approximately 235 million euros ($317.4 million) in costs from its asset management division by 2011.
Deutsche Bank asset management employs around 1,200 staff in Germany, and has around 139 billion euros worth of assets under management in its retail funds.
'A deal with State Street could be struck within weeks,' a person familiar with the matter said.
Administrative costs are also set to be cut at the DB Advisors division, another person said.
'Asset management is mainly a cost pay and not a revenue play,' Chief Executive Josef Ackermann told investors in London last week.
Deutsche Bank, State Street and DWS all declined comment.
Deutsche Bank plans to reach a pretax profit of 500 million euros in its asset management division by 2011, up from 159 million euros in 2009.
(Reporting by Philipp Halstrick additional reporting by Kirsti Knolle, writing by Edward Taylor, +49 69 7565 1231; Philipp.Halstrick@thomsonreuters.com)
($1=.7403 Euro)
Keywords: DEUTSCHE/ADMINISTRATION
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