MetLife is expected to pay about US$6.8 billion in cash and about US$8.7 billion in equity, including convertible preferred, common shares and common equivalent securities, said one of the sources.

The common stock and securities equivalent to common shares would give AIG about 14 percent ownership in MetLife, while the convertible preferred is expected to be liquidated before it converts, the source said.

With the convertible preferred stock, AIG's stake would go above 20 percent, according to sources.

A deal for the AIG Inc unit, American Life Insurance Co (Alico), is scheduled to be announced on March 8, the sources said.

Alico would help MetLife, the largest publicly traded U.S. life insurer, expand its presence in international markets, especially in Japan.

The unit, founded in 1921 and based in Wilmington, Delaware, sells life insurance and retirement products to 19 million customers in 54 countries.