The rumour mill has been working on this one for a few weeks now, but there's been a new round of chatter today anticipating a partial float or sale of Trade Me, by owners Fairfax Media.

Last month, The Australian reported structural changes at media conglomerate Fairfax could lead to a whole or partial sale or float of the home-grown auction site.

It was suggested that a sale or float could provide Fairfax with capital, around $800 million by some estimates, to buy back shares or reduce debt.

Today, the company confirmed a review of the business is being undertaken, along with other assets in the Fairfax portfolio. The Australian reported that investment bank UBS has been engaged to "consider a broad range of strategic option involving Trade Me, including a partial float of the business which analysts believe is worth up to $1 billion."

However, Fairfax was cagey about any definite plans.

"While all opportunities will be reviewed, contrary to market speculation the company has not made any decision on any transaction relating to Trade Me," Fairfax told The Australian.