Rival bidders Morrisons and the EG Group are in a last gasp race to buy the convenience chain McColl's.
Morrisons' final last-minute offer came on Sunday. The BBC reports that EG Group, the petrol station empire owned by billionaire Issa brothers, has now met this bid with a revised proposal.
Their final offer would take on the funding of McColl's pension schemes.
Administrators are set to be appointed for the business which has 1,100 stores.
More than 16,000 people are employed by McColl's, which announced on Thursday night that it was in trouble.
The listed company warned that its shares would be suspended because it was unable to meet the deadline for filing its annual results.
McColl's said that its accounts would not be signed off in time to meet the deadline.
EG Group has been poised to buy McColl's but Morrisons tabled its 11th-hour improved offer on Sunday.
Britain's fourth biggest supermarket chain is offering to take on all the stores and staff.
Morrisons had already agreed to take on McColl's debts, but it is now understood to be willing to pay McColl's lenders in full, straightaway, matching a similar pledge thought to have been made by EG Group.
Morrisons is also prepared to take on McColl's pension commitments.
It is now thought EG's rescue deal also includes the pensions scheme - bringing the offers neck and neck.
A deadline was set for 18:00 BST on Sunday for full and final bids. Both Morrisons and EG Group declined to comment.