Yahoo Inc is discussing a plan to slash its stakes in China's Alibaba Group and its Japanese affiliate as part of a complicated share transaction valued at roughly $17 billion, sources familiar with the matter said on Wednesday.

The deal is expected to be considered by Yahoo's board on Thursday, one of the sources said, adding that the board was not interested in entertaining offers for the entire company at this point.

In the deal under contemplation, Yahoo would effectively transfer most of its 40 percent slice of Alibaba back to the Chinese company and all of its stake in Yahoo Japan to Softbank Corp in return for cash and assets, one of the sources said.

The exact value of the deal would depend on how the assets are valued, one source said.

Shares of Yahoo, which had languished in the red along with much of the technology sector on Wednesday, reversed course and ended the session almost 6 percent higher at $15.99.

Yahoo was not immediately available for comment. The possible deals were first reported in The New York Times.