Steel giant Corus is poised to undertake a radical revamp that could see up to 4,000 jobs cut and the closure of one of its UK plants.

According to reports, Corus is planning the moves as part of a restructuring package, which includes the sale of some operations designed to reverse its fortunes.

Last week chief executive Tony Pedder resigned after reporting Corus' fourth annual loss following an abandoned merger.

Corus has refused to put a number on the potential job losses but chairman Brian Moffat is reported to have said the planned restructuring would not involve as many cuts as last year's revamp of operations, which led to 6,000 workers going.

A spokesman for Corus said: "The company has given no indication of job numbers or the size and impact of any cuts."

Cutting 4,000 jobs would save Corus about £120 million a year.

Any fresh job cuts would come on top of the 10,000 jobs that have been shed in the past two years at the company.

The Observer also reported Corus is planning to sell its rails division and its high-quality plate production in Alabama as part of a programme to raise cash and bring British operations back to profitability.

The paper said the Corus plant at Redcar on Teeside had been earmarked for closure over other vulnerable plants at Port Talbot and Scunthorpe.