EE, Britain's biggest mobile operator, is in talks to take over stores from Phones 4U following its fall into administration.

A spokesman for the firm said: "We can confirm we are in discussions about the stores."

A source close to the company said EE could take over "dozens" of Phones 4U stores, while the Sunday Times said yesterday it was looking at more than 60.

Mobile phone retailer Phones 4U, which has 550 stores and 5,596 employees, fell into administration after EE joined Vodafone in not renewing its network agreement. On Friday, Phones 4U's administrators PwC said Vodafone UK had agreed to take on 140 stores, saving 887 jobs, but making 628 staff redundant.